Question: Gold NL has a constitution that does not repeal any of the replaceable rules of the Corporations Act but does provide for one additional matter:

Gold NL has a constitution that does not repeal any of the replaceable rules of the Corporations Act but does provide for one additional matter:

An objects clause provides that the companys activities are restricted to the exploration and extraction of gold.

The directors of Gold NL have decided to operate a holiday resort near its gold mines in outback Australia and to that end Mark Reckless has entered into a contract with Caravan Pty Ltd for the purchase of 10 mobile homes for $1million in to provide accommodation for guests staying at the holiday resort. The other directors do not like the mobile homes manufactured by Caravan Pty Ltd and they refuse to accept delivery of the mobile homes on the grounds that:

The company has no legal capacity to operate a holiday resort and that Caravan Pty Ltd would have known this limitation from its name.

Advise Caravan Pty Ltd whether Gold NL can refuses to accept delivery of the mobile homes on the ground that it has no legal capacity to operate a holiday resort and that Caravan Pty Ltd would have known this limitation from its name.

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