Exam (elaborations)
LML4806 Assignment 2 2024
- Course
- Institution
LML4806 Assignment 2 2024 Guaranteed Distinction Question and answers
[Show more]
Seller
Follow
zamashengegumede
Reviews received
Content preview
LML4806 Assignment 2Due 15 April 2024
Guaranteed Distinction
Question and Answers
, 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 4
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)
Question Two
Springboard (Pty) Ltd and Scapegoat (Pty) Ltd have concluded an agreement in terms of
which these two companies will merge and consolidate their businesses because they
are competing in a small market. The material terms of the agreement include that the
two existing companies will cease to exist after the merger and a new company,
Togetherness (Pty) Ltd, will hold all the assets and liabilities of the two merging
companies. Furthermore, the shareholders of Springboard (Pty) Ltd will receive a share
consideration of one share in Togetherness (Pty) Ltd for every three shares they hold in
Springboard (Pty) Ltd. The board of Springboard (Pty) Ltd holds separate informal
discussions with all the shareholders of Springboard (Pty) Ltd regarding the proposed
merger ahead of a scheduled shareholders’ meeting to consider and, if appropriate,
approve the merger. During the informal discussions, the shareholders holding about
80% of the general voting rights in Springboard (Pty) Ltd indicate that they will support
the merger. However, a group of shareholders holding between 10% and 20% of the
The benefits of buying summaries with Stuvia:
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
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
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 zamashengegumede. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.76. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
52355 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now