100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
LML4806 ASSIGNMENT 02 SEMESTER 01 R60,00
Add to cart
Quickly navigate to
Preview
  2.  
  3. University Of South Africa (Unisa)
  4.  
  5. LML4806 (LML4806)

Exam (elaborations)

LML4806 ASSIGNMENT 02 SEMESTER 01
 46 views  1 purchase

LML4806 Assignment 2 COMPLETE ANSWERS) Semester 1 2024 - DUE April 2024 100% TRUSTED workings, explanations and solutions. for assistance Question: 1 Coffee Bean Lovers (Pty) Ltd (‘the company’) buys coffee from Kenya and distributes it to different coffee shops in South Africa. D...

[Show more]

Preview 2 out of 5  pages

Document information

  • February 1, 2024
  • 5
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

Subjects

  • lml481 2024 assignment 02 company law

Connected book

book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:

More summaries for

All for this textbook (11)

Written for

All documents for this subject (62)

Seller

avatar-seller
LETSCRACKTHEQUESTION

Reviews received

Content preview

LML4806 ASSIGNMENT 02 2024 SEMESTER 01
100% GUARANTEED ANSWERS
QUESTIONS AND ANSWERS INCLUDED
REFERENCE ALSO INCLUDED

, Question: 1

Coffee Bean Lovers (Pty) Ltd (‘the company’) buys coffee from Kenya and distributes it to
different coffee shops in South Africa. Due to an infestation of bugs at one of the coffee
plantations, the company will not be able to get deliveries of coffee from Kenya for the next
three months. Instead, .the company will have to import coffee from Uganda at a much
higher cost. As a result, the company’s cash flow will be affected severely. Pat, one of the
directors of Coffee Bean Lovers (Pty) Ltd, has informed Jane and Steven, two of the
employees of the company, that the company may face serious financial difficulties in the
next three to twelve months and that they will not be paid their salaries for the next two
months as the company will first have to pay other creditors. Jane and Steven have heard
about business rescue, and are of the view that business rescue

proceedings may be appropriate in the circumstances to assist the company to survive and
to ensure that they will still be paid their salaries. Jane and Steven approach you for advice
on business rescue proceedings. With reference to the relevant statutory provisions:



1.1 Explain what business rescue is and indicate the circumstances in which business
rescue proceedings may be used.



Section 128(1)(b) of the Companies Act 71 of 2008 defines business rescue as proceedings
to facilitate the rehabilitation of a financially distressed company by:The temporary
supervision of the company, and of the management of its affairs,business and property.
A temporary moratorium on the rights of claimants against the company or in respect of its
property in its possession.

The development and implementation, if approved, of a plan to rescue the company, or, if
not possible, a plan to achieve a better return for the company'screditors than the payment
they would have received if the company had been liquidated immediately.

D In terms of section 128(1)() of the Companies Act 71 of 2008 a company will be
financially distressed when:
• the company is reasonably unlikely to be able to pay all its debts as they become
due and payable within the next six months, or

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

Quick and easy check-out

You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

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 this summary from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller LETSCRACKTHEQUESTION. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for R60,00. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

50843 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 14 years now

Start selling
R60,00  1x  sold
  • (0)
Add to cart
Added