Mr. Amiran Weinstock and Mrs. Tamar Beck had been appointed as the directors of LWC Furniture Consolidated Pty Ltd
Mr Weinstock became the sole director when the other director resigned as they were not made directors according to a proper resolution
Mr Weinstock appointed his wife as the director but as he himself was not appointed properly it was regarded as a breach of constitution
Duties Breached by Directors
Section 1322(2) of the Corporation Act 2001
Section 1322(4) of the Act
Section 1322(4)(a) of the Act
Decision of the Court
1.It was provided by the High Court that the term 'contravention' which has been referred in this section, has to be used in a broad way, as it was with the common language of this se.
2. It was also provided by the High Court that the authority given to the court in section 1322(4) must not be constructed on any implied restriction.
The scope of power granted to the court by the Act was reviewed
It was held by the court that a wide range of powers is provided to it under section 1322(4)(a)
The power was adequately broad to validities the appointment of director by another director even if the original director was not appointed validly.