Exam (elaborations)
LML4806 Assignment 2 Semester 2 2024
- Course
- LML4806 (LML4806)
- Institution
- University Of South Africa (Unisa)
LML4806 Assignment 2 Semester 2 2024 QUESTIONS WITH DETAILED ANSWERS
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LML4806Assignment 2
Semester 2 2024
[Company address]
, LML4806 Assignment 2 Semester 2 2024
Question:
1 Barbara is a business rescue practitioner of Thirsty Elephants (Pty) Ltd, a
company that is under business rescue. She convenes a meeting of the
creditors of Thirsty Elephants (Pty) Ltd to discuss and vote on the business
rescue plan. The business rescue plan contains ample provisions that
protect the interests of the secured creditors of Thirsty Elephants (Pty) Ltd.
Winelands Packers (Pty) Ltd, a secured creditor of Thirsty Elephants (Pty)
Ltd holding 27% of the creditors’ voting interests that are voted at the
meeting, votes against the adoption of the business rescue plan. All the
other secured and unsecured creditors in attendance at the meeting vote
for the adoption of the business rescue plan as the plan presents certain
advantages to them. Barbara is concerned that Winelands Packers (Pty)
Ltd’s vote against the adoption of the 4 business rescue plan is detrimental
to the successful rescue of Thirsty Elephants (Pty) Ltd, the interests of its
employees and the interests of the other affected creditors. With reference
to the Companies Act 71 of 2008 and the relevant case law, advise
Barbara on whether she may successfully apply to a court to set aside the
vote of Winelands Packers (Pty) Ltd. In your advice, you should discuss the
grounds on which such an application may be made, the factors that the
court should take into account when considering such an application and
the effect of a court setting aside Winelands Packers (Pty) Ltd’s vote. (10)
In advising Barbara on whether she may successfully apply to a court to set
aside the vote of Winelands Packers (Pty) Ltd, it is crucial to consider the
relevant provisions of the Companies Act 71 of 2008 (the Act) and the
applicable case law.
### Grounds for Application
Barbara can apply to the court to set aside the vote of Winelands Packers
(Pty) Ltd under Section 153(1)(b)(i)(bb) of the Companies Act 71 of 2008.
According to this section, if a business rescue plan is rejected by the
creditors, any affected person (including the business rescue practitioner)
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