... to purchase shares in itself. This is not in compliance with section 260A and is considered as prohibited financial assistance as well as violating the doctrine of capital maintenance. The second issue here would be that Monty's consideration is not equal to the value of his allotment.2 Consideration enough to suffice a contract is inadequate, it has to represent the worth of the allotment.3 Control on the directors would take the form of mechanisms, which ensure that they make decisions that protects and advances the interests of other members. Assuming that Easy Bucks Pty Ltd was incorporated after the 1st July 1998, it's lack of a constitution makes it subject to the replaceable rules as set out by the Corporations Act. These rules serve as contractual obligations between the directors (both Bart and Monty) and the company4 by subjecting them to internal governance5. Another form of control can also be found ...

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