Companies and Other Business Structures in South Africa
LML4806 ASSIGNMENT 1 MEMO - SEMESTER 1 - 2024 - UNISA – DUE DATE: - 14 MARCH 2024 (DETAILED ANSWERS - FULLY REFERENCED - GUARANTEED A+!)
Question 1
Mandla is both a director and shareholder of Cargo Logistics Ltd. He wants to buy more shares in Cargo Logistics Ltd but does not have enough m...
LML4806 PORTFOLIO MEMO - SEMESTER 2 - 2024 - OCTOBER/NOVEMBER - UNISA - DUE DATE :- 24 OCTOBER 2024 (FULLY REFERENCED! DISTINCTION GUARANTEED!)
LML4806 EXAM PACK 2024/2025 {QUESTIONS AND ANSWERS }
LML4806 ASSIGNMENT 1 MEMO - SEMESTER 2 - 2024 - UNISA - DUE : 20 AUGUST 2024 - UNIQUE NUMBER:- 590226 ( FULLY REFERENCED WITH FOOTNOTES- DISTINCTION GUARANTEED)
All for this textbook (18)
Written for
University of South Africa (Unisa)
Company Law (LML4806)
All documents for this subject (61)
Seller
Follow
StuddyBuddyTutor
Reviews received
Content preview
A +
ASSIGNMENT PREVIEW
SEE PAGE 1
DISTINCTION GUARANTEED!!! Footnotes and/or
Bibliography included. *
Disclaimer
Extreme care has been used by our Tutors to draft this document, however the contents are provided “as is” without any representations or warranties, express or implied. Th
document is to be used for comparison, research, and reference purposes ONLY. No part of this document may be reproduced, resold, or transmitted in any form or by any mea
without prior written permission from the Author. By making use of this document, you agree to fully accept the consequences should you plagiarise or misuse this document. – STU
BUDDY TUTOR SA
Mandla is both a director and shareholder of Cargo Logistics Ltd. He wants to buy more
shares in Cargo Logistics Ltd but does not have enough money to do so. He offers to rent
out a warehouse to Cargo Logistics Ltd. Cargo Logistics Ltd agrees to pay R1.2 million
per annum as rent for the warehouse. Mandla then uses part of the money to purchase 10
000 shares in Cargo Logistics Ltd. With reference to the relevant case law, statutory
provisions and the facts provided in the above scenario, discuss whether Cargo Logistics
Ltd has provided financial assistance for the purchase of its securities.
In the scenario described, the transaction involving Mandla, Cargo Logistics Ltd, and the
rental of a warehouse raises questions about whether Cargo Logistics Ltd has provided
financial assistance for the purchase of its securities. The issue revolves around the
concept of financial assistance, particularly in the context of share acquisitions.
The Companies Act, statutory provisions, and relevant case law come into play.
1. Companies Act Provisions: -
Section 44(2): This section prohibits a company from providing financial assistance for the
purpose of or in connection with the purchase of its own shares, or the shares of its holding
company.1
Section 45: Provides exceptions to the prohibition, allowing financial assistance if certain
requirements are met, such as a special resolution of shareholders.2
1
Companies Act 71 of 2008.
2
Companies Act 71 of 2008.
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 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 StuddyBuddyTutor. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £2.19. You're not tied to anything after your purchase.
