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18. What are replaceable rules?

Replaceable Rules are the rules by which the company is administered in the absence of a duly adopted company constitution. They were introduced on 1 July 1998 and are set out in the Corporations Act. If the government amends the Replaceable Rules as set out in the Act then the company automatically adopts these changes. Theoretically, this sounds great, however the practicalities of obtaining a hard copy of these rules for perusal diminish with each amendment. In addition the directors of the company must keep abreast of the amendments from time to time.

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