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LML4806 ASSESSMENT 02 FOR SECOND SEMESTER 2024
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QUESTION 1Reasons for Requesting to Set Aside a Vote
In accordance with Section 152(1)(b) of the Companies Act 71 of 2008, Barbara may
petition the court to have Winelands Packers (Pty) Ltd's vote annulled. A vote may
be set aside under this section if it unfairly disadvantages or disregards the interests
of any party that is impacted, including the business, its creditors, or its
shareholders.
Factors for Court Consideration
When considering Barbara's application, the court should take into account:
Whether the vote unfairly prejudices or disregards the interests of other affected
creditors, the company, or its employees.
The reasons behind Winelands Packers (Pty) Ltd's dissenting vote.
The potential impact of setting aside the vote on the successful rescue of Thirsty
Elephants (Pty) Ltd.
Impact of Disregarding a Vote
The company recovery plan might be approved without Winelands Packers (Pty)
Ltd's dissenting vote if the court throws out their vote. In addition to safeguarding the
interests of Thirsty Elephants (Pty) Ltd's creditors and staff, this might help the
company be successfully rescued.
Barbara should make sure that her application is well-supported by evidence and
legal arguments that show how Winelands Packers (Pty) Ltd's vote unjustly harms
the interests of other affected parties.
QUESTION 2
2.1 Identify the type of transaction that is proposed in the scenario above.
Tyrex Properties Ltd. is proposing to sell all of its assets and business operations to
a third party for a cash payment of R6 billion. This kind of deal is frequently called an
asset disposal.
2.2 Explain whether Catalyst Holdings Ltd and Tyrex Properties Ltd are related.
Companies are deemed connected under the Companies Act 71 of 2008 if one
controls the other directly or indirectly, or if a third party controls both. As a result of
owning 70% of Tyrex Properties Ltd's common shares, Catalyst Holdings Ltd in this
instance controls Tyrex Properties Ltd. Tyrex Properties Ltd and Catalyst Holdings
Ltd are hence connected.
2.3 Advise Robyn on whether he would be entitled to vote in regard to the
proposed transaction or to seek the appraisal remedy in the event that the
board of directors of Tyrex Properties Ltd proceeds to implement the
proposed transaction.
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