LML4806
Assignment 2 Semester 1 2025
Detailed Solutions, References & Explanations
Unique number:
Due Date: May 2025
QUESTION 1
1.1. (2 ANSWERS PROVIDED)
Under section 71 of the Companies Act 71 of 2008, a director may be removed by either the
shareholders or the board of directors. In this case, since Star Engineering (Pty) Ltd only has
two directors, Mashudu must rely on the provisions for board removal under section 71(3).
A director may be removed by the board if:
1. The director has become ineligible or disqualified.
2. The director has become incapacitated and is unable to perform the functions of a
director.
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