ASSUMPTIONS

Third party assumptions have their origin in which case?

• Hely-Hutchinson

• Turquand

• Panorama

• NAB v Sparrow

Which Corporations Act provision replaces the Turquand Rule?

• s126

• s127

• s128

• s129

The Indoor Management Rule means that outsiders dealing with a company . . .

• Can make an assumption about the validity of the company's internal compliance with their constitution

• Can not make an assumption about the validity of the company's internal compliance with their constitution

Exceptions to Turquands Rule includes ...

• Actual knowledge

• Constructive notice

• Making further inquires

• Forgery

The High Court approved of the Indoor Management Rule in which case?

• Morris v Kanssen

• Albert Gardens v Mercantile Credits

• Northside Developments v Registrar General

• Lyford v Media Portfolio

Assumptions protect outsiders because they . . .

• Don't have access to internal company processes or documents

• Would waste time and effort checking every transaction to make sure it is valid

• Contracted anyway despite knowledge that the transaction was not compliant

• Rely on corporations acting in good faith

s 129 (1) assumes that . . .

• An officer has authority to authorise a document and warrant it is genuine

• If a seal is witnessed then it is a valid document

• If two directors sign a document then it is valid

• The company's constitution or replaceable rules have been complied with

s 129 (2) assumes that . . .

• A company's constitution and replaceable rules have been complied with

• A director or secretary named in publicly available information has been duly appointed

• A person held out by the company to be an officer has been duly appointed

• Officers perform their duties properly

s 129 (3) assumes that . . .

• An officer properly performed their duties

• The constitution and replaceable rules have been complied with

• An officer who is held out by the company has been duly appointed

• An officer has authority to perform duties customary of that kind of officer

The difference between s129 (5) and (6) is that . . .

• (5) refers to use of the company seal and (6) refers to signing without a seal

• (5) refers to signing without a seal and (6) refers to use of the company seal