COMPANY LAW LML 4806 ASSIGNMENT 02 SEMESTER 01 2025 | | What to expect in this document Two options of answers to choose between Detailed trusted answers All questions answered Distinction pass guaranteed Plagiarism free 100% ASSIGNMENT 2 Que...
COMPANY LAW LML 4806
ASSIGNMENT 02 SEMESTER 01 2025
| |
, What to expect in this document
Two options of answers to choose between
Detailed trusted answers
All questions answered
Distinction pass guaranteed
Plagiarism free 100%
ASSIGNMENT 2
Question: 1 Mashudu and Peter are the only directors of Star
Engineering (Pty) Ltd. Peter was appointed as an executive director of
Star Engineering (Pty) Ltd two years ago under a five-year contract of
employment with the company. Mashudu is concerned that for the
past two financial years Peter has been failing to ensure the timely
preparation and submission of the company’s annual financial
statements, and that Peter omitted to sign the annual financial
statements for the previous financial year as the authorised director, as
required. Mashudu approaches you for legal advice regarding the
removal of a company director. Advise Mashudu on the following
matters:
1.1 Whether there is any valid basis to remove Peter as a director of Star
Engineering (Pty) Ltd.
1.2 The procedure that must be followed and the rights that Peter has
in terms of the Companies Act 71 of 2008 should Mashudu decide that
he (Peter) must be removed as a director of Star Engineering (Pty) Ltd.
(12) Question: 2 Springbok Finance (Pty) Ltd is one of the creditors of
Falcon Airlines Ltd. The board of directors of Falcon Airlines Ltd
passed a resolution placing Falcon Airlines Ltd in voluntary business
rescue and appointed Ntando as the business rescue practitioner.
Springbok Finance (Pty) Ltd believes that Falcon Airlines Ltd can be
successfully rescued. However, Springbok Finance (Pty) Ltd is
PAGE 1
, dissatisfied with the way Ntando is performing his duties as the
business rescue practitioner as he has failed to implement the
approved business rescue plan. Ntando has also not been preparing
and submitting the required monthly reports even though the business
rescue proceedings have lasted longer than three months. Springbok
Finance (Pty) Ltd wants to appoint Andile, an experienced business
rescue practitioner in the airline industry, to replace Ntando as the
business rescue practitioner of Falcon Airlines Ltd. Explain whether
there are grounds to remove Ntando as the business rescue
practitioner, and if so whether Springbok Finance (Pty) Ltd may
appoint Andile to replace Ntando as the business rescue practitioner of
Falcon Airlines Ltd. (5)
TOTAL FOR ASSIGNMENT 2: [20]
__________The End__________
Assignment 2
Question 1: Legal advice to Mashudu
1.1 Valid basis to remove Peter as a director
Under the Companies Act 71 of 2008, there are valid grounds to
remove Peter as a director if he has failed in his duties as prescribed
under the Act. These include:
Failure to fulfill fiduciary duties:
PAGE 2
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