LML4801 ASSIGNMENT 2 (CORRECT ANSWERS ) SEMESTER 2 DUE DATE SEPTEMBER 2024 GUARANTEED DISTINCTION
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Course
LML4801
Institution
University Of South Africa
QUESTION 1
Barbara is a business rescue practitioner of Thirsty Elephants (Pty) Ltd, a company that is
under business rescue. She convenes a meeting of the creditors of Thirsty Elephants (Pty)
Ltd to discuss and vote on the business rescue plan. The business rescue plan contains
ample provision...
LML4801 ASSIGNMENT 2
(CORRECT ANSWERS )
SEMESTER 2 DUE DATE
SEPTEMBER 2024
GUARANTEED DISTINCTION
QUESTION 1
Barbara is a business rescue practitioner of Thirsty Elephants (Pty) Ltd, a company that is
under business rescue. She convenes a meeting of the creditors of Thirsty Elephants (Pty)
Ltd to discuss and vote on the business rescue plan. The business rescue plan contains
ample provisions that protect the interests of the secured creditors of Thirsty Elephants
(Pty) Ltd. Winelands Packers (Pty) Ltd, a secured creditor of Thirsty Elephants (Pty) Ltd
holding 27% of the creditors’ voting interests that are voted at the meeting, votes against
the adoption of the business rescue plan. All the other secured and unsecured creditors in
attendance at the meeting vote for the adoption of the business rescue plan as the plan
presents certain advantages to them. Barbara is concerned that Winelands Packers (Pty)
Ltd’s vote against the adoption of the business rescue plan is detrimental to the successful
rescue of Thirsty Elephants (Pty) Ltd, the interests of its employees and the interests of the
other affected creditors. With reference to the Companies Act 71 of 2008 and the relevant
case law, advise Barbara on whether she may successfully apply to a court to set aside the
vote of Winelands Packers (Pty) Ltd. In your advice, you should discuss the grounds on
which such an application may be made, the factors that the court should take into account
when considering such an applica
, Question: 1
Barbara is a business rescue practitioner of Thirsty Elephants (Pty) Ltd, a company that is
under business rescue. She convenes a meeting of the creditors of Thirsty Elephants (Pty)
Ltd to discuss and vote on the business rescue plan. The business rescue plan contains
ample provisions that protect the interests of the secured creditors of Thirsty Elephants
(Pty) Ltd. Winelands Packers (Pty) Ltd, a secured creditor of Thirsty Elephants (Pty) Ltd
holding 27% of the creditors’ voting interests that are voted at the meeting, votes against
the adoption of the business rescue plan. All the other secured and unsecured creditors in
attendance at the meeting vote for the adoption of the business rescue plan as the plan
presents certain advantages to them. Barbara is concerned that Winelands Packers (Pty)
Ltd’s vote against the adoption of the business rescue plan is detrimental to the successful
rescue of Thirsty Elephants (Pty) Ltd, the interests of its employees and the interests of the
other affected creditors. With reference to the Companies Act 71 of 2008 and the relevant
case law, advise Barbara on whether she may successfully apply to a court to set aside the
vote of Winelands Packers (Pty) Ltd. In your advice, you should discuss the grounds on
which such an application may be made, the factors that the court should take into account
when considering such an application and the effect of a court setting aside Winelands
Packers (Pty) Ltd’s vote.
ANSWER
Grounds for Application to Set Aside Vote
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