Company Constitution


Alissa and Bob are two good friends who would like to start a business together. They pooled together some money and rented one shoplot in Starling Mall and registered a company called Books Galore. The objects of Books Galore Sdn Bhd are as follows: 1. to buy and sell local and imported books; 2. to operate a bookshop; and 3. to do all such other things which, in the opinion of the Board of Directors, are relevant to the above businesses of the company. In June, Bob contracted with Readers-R-Us Australia to import 1,000 e-book readers (tablets) for sale in Malaysia. The delivery will take place in one month’s time. Alissa sees this purchase as unnecessary as the tablets are costly, the market is uncertain and this venture may even damage Books Galore’s business which focuses on printed books. Can Alissa cancel Bob’s order? (10 marks)

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