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Assignment help 3809

At a members’ meeting of Construction Ltd the shareholders passed 2 resolutions, each with a 90% majority. The first was that the company should invest its excess cash in the Hong Kong stock market and the second was to create a constitution with a clause stating that the company’s activities are to be restricted to real estate development and investments

At their next monthly board meeting the directors voted not to invest in the Hong Kong stock market. They also decided that the members had no right to create a constitution and restrict the company’s activities, so they would also ignore the second resolution.


Are the directors legally required to observe both resolutions of the members in general meeting?  

Can you please find me a IRAC answer for this one

i couldn’t find it in here


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