Simon Michael and Don set up a project management company ca

Simon, Michael and Don set up a project management company called Millennium Pty Ltd. Don is a solicitor and the constitution of Millennium Pty Ltd nominates that Don will be the solicitor for any land purchases or sales made by the company. The articles also provide that any disputes which arise between the company and its members should be first referred to an arbitrator before there are any court proceedings. After a number of years, Simon and Michael meet another solicitor who they think is more efficient than Don and they appoint him as solicitor for Millennium Pty Ltd. Don brings legal action against Millennium Pty Ltd over the matter. Advise the company as to their legal positio

Solution

There are twon angles:

1.Action to remove Don:

While appointing a new solicitor, first they have to null the contract that was set up with nominating Don as solicitor.

Then if there is any objection it should have dealt at the arbitrator. And then it should go to the court.

2. Legal action by Don

As any problem of the members and the company has to be first dealt at Arbitrator, the court would also advise them to go to their internal arbitrator and then this legal action can be taken up.

Hence the company would first ask the court to respect the contract and forward the case to the arbitrator and then if no resolution is attained, it to be taken up.