Other
LML4806 ASSIGNMENT 2 SEMESTER 1 - 2023 (816869)
- Course
- Institution
- Book
LML4806 ASSIGNMENT 2 SEMESTER 1 - 2023 () DUE DATE: 18 APRIL 2023
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
LML4806 PORTFOLIO MEMO - OCT./NOV. 2024 - SEMESTER 2 - UNISA - DUE DATE :- 24 OCTOBER 2024 - (DETAILED ANSWERS WITH FOOTNOTES AND BIBLIOGRAPHY - DISTINCTION GUARANTEED!)
-
LML4806 Assignment 2 Semester 2 2024 | Due August 2024
-
LML4806 Assignment 1 Semester 2 2024 | Due August 2024
Seller
Follow
Masters
Reviews received
Content preview
LML4806 ASSIGNMENT 2SEMESTER 1 - 2023
UNIQUE NUMBER: 816869
DUE DATE: 18 APRIL 2023
, Mahlangu Roadworks (Pty) Ltd was awarded a contract by a provincial government to
upgrade and to repair a number of secondary roads in the province. The company
completed the work months ago but has still not received payment from the provincial
government. As a result, the company is struggling to pay its employees and has not paid
other creditors when payment was due. It has also exhausted its credit facilities at the
bank. The company’s managing director, Mr Mahlangu, believes that the board should
immediately adopt a resolution to place the company under business rescue because
some creditors have threatened to apply for liquidation of the company if they do not get
paid. He fears that once an application for a liquidation order has been filed with the
court, and certainly if a liquidation order is issued by the court, business rescue will no
longer be possible. Mr Mahlangu is also worried because the company leases most of the
heavy-duty equipment it uses and although the company has managed to keep up the
payments for this equipment up to now, he is not sure for how much longer this will be
possible. If the company misses any payment the lessors may cancel the lease and remove
their equipment.
Advise Mr Mahlangu on the following aspects:
1.1 With reference to the Companies Act 71 of 2008 and relevant case law, discuss
whether the board of directors may commence business rescue proceedings
(assuming that Mahlangu Roadworks (Pty) Ltd is financially distressed) after
liquidation proceedings have been initiated against Mahlangu Roadworks (Pty) Ltd.
Discuss further whether Mahlangu Roadworks (Pty) Ltd may be placed under
business rescue by any other party after a liquidation application has already been
instituted against the company as well as after a liquidation order has been issued
against the company.
1.2 Assuming that Mahlangu Roadworks (Pty) Ltd is financially distressed, discuss
whether, instead of going down the route of business rescue, the company may
enter into a compromise arrangement with its creditors and thereby prevent
dissolution of the company if a liquidation order is issued, and what such a
procedure would entail.
1.3 Assuming Mahlangu Roadworks (Pty) Ltd is placed under business rescue, explain
to what extent the business rescue practitioner may prevent the lessors of the
heavy-duty equipment from cancelling the lease contracts and re-possessing the
heavy-duty equipment if the company misses any payment.
1
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 Masters. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.89. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79650 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now