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LML4806 ASSIGNMENT 2 MEMO - SEMESTER 1 - 2024 UNISA – DUE DATE: - 15 APRIL 2024 (DETAILED ANSWERS WITH FOOTNOTES AND A BIBLIOGRAPHY - DISTINCTION GUARANTEED!) $2.83
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LML4806 ASSIGNMENT 2 MEMO - SEMESTER 1 - 2024 UNISA – DUE DATE: - 15 APRIL 2024 (DETAILED ANSWERS WITH FOOTNOTES AND A BIBLIOGRAPHY - DISTINCTION GUARANTEED!)

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  • Companies and Other Business Structures in South Africa

LML4806 ASSIGNMENT 2 MEMO - SEMESTER 1 - 2024 UNISA – DUE DATE: - 15 APRIL 2024 (DETAILED ANSWERS WITH FOOTNOTES AND A BIBLIOGRAPHY - DISTINCTION GUARANTEED!) Question: 1 Coffee Bean Lovers (Pty) Ltd (‘the company’) buys coffee from Kenya and distributes it to different coffee shops in...

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LML4806
COMPANY LAW

ASSIGNMENT 2 MEMO
SEMESTER 1 – 2024 - UNISA

UNIQUE NUMBER: - 590092
DUE DATE: - 15 APRIL 2024
Includes Footnotes and/or Bibliography.


ASSIGNMENT PREVIEW
Coffee Bean Lovers (Pty) Ltd (‘the company’) buys coffee from Kenya and distributes it to
different coffee shops in South Africa. Due to an infestation of bugs at one of the coffee
plantations, the company will not be able to get deliveries of coffee from Kenya for the
next three months. Instead, the company will have to import coffee from Uganda at a much
higher cost. As a result, the company’s cash flow will be affected severely. Pat, one of the
directors of Coffee Bean Lovers (Pty) Ltd, has informed Jane and Steven, two of the
employees of the company, that the company may face serious financial difficulties in the
next three to twelve months and that they will not be paid their salaries for the next two
months as the company will first have to pay other creditors. Jane and Steven have heard
about business rescue and are of the view that business rescue proceedings may be
appropriate in the circumstances to assist the company to survive and to ensure that they
will still be paid their salaries. Jane and Steven approach you for advice on business
rescue proceedings.…continues…
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, Question: 1


Coffee Bean Lovers (Pty) Ltd (‘the company’) buys coffee from Kenya and
distributes it to different coffee shops in South Africa. Due to an infestation of bugs
at one of the coffee plantations, the company will not be able to get deliveries of
coffee from Kenya for the next three months. Instead, the company will have to
import coffee from Uganda at a much higher cost. As a result, the company’s cash
flow will be affected severely. Pat, one of the directors of Coffee Bean Lovers (Pty)
Ltd, has informed Jane and Steven, two of the employees of the company, that the
company may face serious financial difficulties in the next three to twelve months
and that they will not be paid their salaries for the next two months as the company
will first have to pay other creditors. Jane and Steven have heard about business
rescue and are of the view that business rescue proceedings may be appropriate
in the circumstances to assist the company to survive and to ensure that they will
still be paid their salaries. Jane and Steven approach you for advice on business
rescue proceedings. With reference to the relevant statutory provisions:


1.1


Explain what business rescue is and indicate the circumstances in which business
rescue proceedings may be used. (5)


1.2


Advise Jane and Steven how business rescue proceedings may be commenced
and indicate whether Jane and Steven, in their capacity as employees, would have
any means of ensuring that the business rescue proceedings are commenced. (5)

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