Exam (elaborations)
LML4806 Assignment 1 Semester 2 2023
- Institution
- University Of South Africa (Unisa)
QUESTIONS AND ANSWERS
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LML4806Assignment 1
Semester 2 2023
[Document subtitle]
[DATE]
[COMPANY NAME]
[Company address]
, LML4806 Assignment 1 Semester 2 2023
Question: 1
Shareholders’ resolutions must usually be voted on at properly constituted
meetings of the company’s shareholders. However, the Companies Act 71 of
2008 provides for an exception to this general rule. Explain what this
exception under the Companies Act 71 of 2008 entails. (5)
Under the Companies Act 71 of 2008 (South Africa), there is an exception to the
general rule that shareholders' resolutions must be voted on at properly constituted
meetings of the company's shareholders. This exception is known as the
"Unanimous Written Consent" provision.
The Unanimous Written Consent provision allows shareholders of a company to
pass resolutions without the need for a formal meeting, as long as all shareholders
entitled to vote on the resolution provide their written consent or approval. In other
words, if every single shareholder of the company agrees to a particular resolution,
they can sign a written document indicating their consent, and the resolution will
be considered valid and effective.
Here are the key points regarding the Unanimous Written Consent provision:
Written Consent: Instead of gathering shareholders for a physical or virtual
meeting, the shareholders can individually sign a written document explicitly
stating their approval of the resolution.
Unanimity: For this exception to be applicable, all shareholders who are entitled to
vote on the particular resolution must agree to it. Even if one shareholder dissents
or does not provide written consent, the exception cannot be used.
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