100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Summary LML4806 Assignment 1 Semester 1 2024 R100,00
Add to cart

Summary

Summary LML4806 Assignment 1 Semester 1 2024

1 review
 94 views  5 purchases

LML4806: Company Law - Semester 1, 2024 - Assignment 1 Model Answer LML4806: Company Law for the 2024 Semester 1 at UNISA. This document, titled LML4806, offers a comprehensive model answer for the first assignment of the course. Developed by seasoned legal experts, this model answer serves as a...

[Show more]

Preview 1 out of 4  pages

  • February 22, 2024
  • 4
  • 2023/2024
  • Summary
All documents for this subject (180)

1  review

review-writer-avatar

By: LoveB • 9 months ago

avatar-seller
riberydejong
LML4806 Company Law
Semester 1 Assignment 1 - 2024
Mercantile Law Department
Name:
Surname:
Student number:




Question 1




In the given context, Cargo Logistics Ltd is being investigated for potentially offering
financial aid to Mandla, a director and shareholder, to purchase its securities. The
Companies Act governs such transactions, setting limits on companies providing
support for share acquisition. This essay will analyse the specifics of the situation,
relevant legal regulations, and case law to determine if Cargo Logistics Ltd did
indeed provide financial assistance.


As per section 44 of the Companies Act 71 of 2008 in South Africa, companies are
generally prohibited from giving financial aid for the purchase of their shares, except
under certain conditions. Financial aid includes various forms like loans, guarantees,
and other assistance aimed at facilitating share acquisition.


In this scenario, Mandla intends to acquire more shares in Cargo Logistics Ltd but
lacks adequate funds. To address this, Cargo Logistics Ltd agrees to rent a
warehouse to Mandla for R1.2 million annually. Mandla subsequently uses a portion
of this rental income to purchase 10,000 shares in the company.


The key question is whether the rental payment from Cargo Logistics Ltd constitutes
financial aid for Mandla's share acquisition. Legal precedents and interpretations of
the Companies Act play a crucial role in understanding the nature of the transaction.

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 riberydejong. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for R100,00. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

53022 documents were sold in the last 30 days

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

Start selling
R100,00  5x  sold
  • (1)
Add to cart
Added