100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
LML4806 PORTFOLIO MEMO - SEMESTER 2 - 2022 - OCT./NOV. - UNISA - (WITH DETAILED FOOTNOTES AND A BIBLIOGRAPHY) $22.46
Add to cart
Quickly navigate to
Preview
  2.  
  3. University Of South Africa (Unisa)
  4.  
  5. LML4806 - Company Law

Exam (elaborations)

LML4806 PORTFOLIO MEMO - SEMESTER 2 - 2022 - OCT./NOV. - UNISA - (WITH DETAILED FOOTNOTES AND A BIBLIOGRAPHY)

2 reviews
 5 purchases
  • Course
  • LML4806 - Company Law
  • Institution
  • University Of South Africa (Unisa)

QUESTION 1 1.1 Discuss the relevant section of the Companies Act 71 of 2008 that appears to be a codification of the common-law Turquand rule and highlight the similarities and the differences between the provisions of that particular section and the common-law Turquand rule. (10) 1.2 David i...

[Show more]
Last document update: 2 year ago

Preview 1 out of 15  pages

Document information

  • October 31, 2022
  • October 31, 2022
  • 15
  • 2022/2023
  • Exam (elaborations)
  • Questions & answers

Subjects

  • lml4806 portfolio memo semester 2 2022 octnov unisa with detailed footnotes and a bibliography
  • question 1 11 discuss the relevant section of the companies act 71 of 2008 that appears

Written for

  • University of South Africa (Unisa)
  • LML4806 - Company Law
All documents for this subject (179)

2  reviews

review-writer-avatar

By: tiger2 • 2 year ago

reply-writer-avatar

By: LLBExampacksAndTutorials • 1 year ago

Thank you for your review. Please WhatsApp us on 074 074 3729 should you need assistance with any other modules/assignments/portfolios.

review-writer-avatar

By: kamogelomagubane • 2 year ago

reply-writer-avatar

By: LLBExampacksAndTutorials • 1 year ago

Thank you for your review. Please WhatsApp us on 074 074 3729 should you need assistance with any other modules/assignments/portfolios.

Seller

avatar-seller
LLBExampacksAndTutorials

Reviews received

Content preview

QUESTION 1


1.1 Discuss the relevant section of the Companies Act 71 of 2008 that appears
to be a codification of the common-law Turquand rule and highlight the
similarities and the differences between the provisions of that particular
section and the common-law Turquand rule. (10)




The Turquand rule emanates from the seminal English of Royal British Bank v
Turquand1. According to the common law Turquand rule, an outsider doing business
with the company in good faith is entitled to assume that all internal requirements
and procedures, which the contracting party should have followed, have been
complied with. As a result the company will be bound by the contract even if the
internal requirements and procedures have not been complied with. It would be a
different case if:

a) if the outsider was aware of the fact that the requirements and procedures
had not been complied with; or
b) if the circumstances in which the contract was concluded were suspicious.


The Turquand rule was formulated to keep an outsider’s duty to inquire into the
affairs of the company within reasonable bounds. 2 In the case of Wolpert3, it was
provided in the Articles of the company that the board of directors are empowered to
allow a person to sign promissory notes on its behalf. Clearly, the board could
authorise anyone to sign promissory notes on its behalf. In the Wolpert case, one of
the company’s ordinary directors signed promissory notes on behalf of the company
without authorisation and the question arose whether the outsider was entitled to
assume that the director was authorised to do so.4

The court found that an outsider with express or constructive notice of the Articles
could assume that someone was authorised to sign the notes, but not that a specific

1
Royal British Bank v Turquand (1856) 6 El. & Bl. 327; 119 ER 886
2
Cassim FHI , Cassim MF, Cassim R, Jooste R, Shev J and Yeats J The Law of Business Structures
Juta ( Cape Town 2012) p 200.
3
Wolpert v Uitzigt Properties (Pty) Ltd 1961 (2) SA 257 (W.,
4
Cassim FHI , Cassim MF, Cassim R, Jooste R, Shev J and Yeats J The Law of Business Structures
Juta ( Cape Town 2012) p 200.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller LLBExampacksAndTutorials. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $22.46. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67479 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling
$22.46  5x  sold
  • (2)
Add to cart
Added