CAS1501
Assignment 3 Semester 2 2024
Detailed Solutions, References & Explanations
Unique number: 854162
Due Date: 17 September 2024
C1: Main finding of Judge Baloyi
• The main finding was that Mr. John Smith, the former CEO of Pacific Petrol Power Limited
(PPP), was solely liable for R2.146 billion in losses due to his breach of fiduciary and
statutory duties under the Companies Act.
C2: Main reason Mr. Smith was found guilty
• Mr. Smith was found guilty because he failed to act on several red flags that were raised in
an internal audit report and did not respond to the company's deteriorating financial position
despite his accounting background.
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