Reference no: EM131482371

James is a director of Asetra Pty Ltd - a building and construction company. It is a large proprietary company. James works with 3 other directors to manage the construction business but lately has become annoyed with one of the other directors Lucy. James thinks that construction is a man's business and that since he has 25 years' experience in the industry he should not have to consult with Lucy about every decision as she is only 31 years old. Independently, James forges the signatures of other directors on a Directors meeting report that authorises him to negotiate and signs a contract with Premier Constructions to design and build 17 town houses in northwest Sydney. The Premier Constructions representative had a strong suspicion that James did not have the authority to sign this contract alone. James then appoints two of his old friends as directors of Asetra and decides to send Lucy a letter removing her from her position. The company operates under the replaceable rules and does not have its own constitution. As a director of Asetra, Lucy is denying that her company has a contract with Premier Constructions. She also refuses to be removed in this manner and is doubtful that the two new directors have been properly appointed. Lucy seeks your opinion on whether James can legally engage in all of these activities. Advise Lucy.