LML4806 - COMPANY LAW EXAM PACK 2023
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University of South Africa (Unisa)
LML4806 - Company Law (LML4806)
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COMPANY LAW
LML4806
2023
EXAM PACK
Compiled by
Camecia Cass
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, LML4806/201/1/2023
Tutorial Letter 201/1/2023
Company Law
Semester 1
Department of Mercantile Law
This tutorial letter contains important information
about your module.
BARCODE
, LML4806/201/1/2023
CONTENTS
Page
1 FEEDBACK ON ASSIGNMENT 01................................................................................................ 3
2 FEEDBACK ON ASSIGNMENT 02................................................................................................ 7
2 CONCEPT EXAMINATION QUESTIONS FOR PURPOSES OF REVISION .............................. 10
2 FEEDBACK ON THE CONCEPT EXAMINATION QUESTIONS ................................................ 13
3 GENERAL COMMENTS REGARDING THE EXAMINATION ..................................................... 21
2
, LML4806/201/1/2023
Dear Student
The aim of this tutorial letter is to provide you with guidelines to answering Assignment 01 and
Assignment 02 as well as the concept examination questions for revision purposes. These
guidelines are not model answers. You should also consult the relevant sections of the
Companies Act 71 of 2008, the study guide and the prescribed textbook to which you are referred
for further details. Note that the concept exam questions merely serve as examples of how
questions are asked in the examination. In order to pass this module, you should study all the
prescribed work.
1 FEEDBACK ON ASSIGNMENT 01
QUESTION 1
Musa, Amos, Sipho and Jimmy are directors of Khubo Limited. Jimmy was appointed as an
executive director of Khubo Limited three years ago under a five-year contract of employment
with the company. Musa has expressed his concerns to the board of directors that for the past
two financial years Jimmy has been failing to ensure the timely preparation and submission of the
company’s annual financial statements, and that Jimmy omitted to sign the annual financial
statements for the previous financial year as the authorised director, as required. Musa has also
informed the board of directors that, after joining Khubo Limited, Jimmy was removed as
chairperson of the board of trustees of the JF Pension Fund after he forged some documents and
withdrew R2 million from the JF Pension Fund’s bank account for his personal use. Advise Jimmy
on the following:
1.1 Whether under the circumstances of this case the board of directors of Khubo Limited will
have valid grounds to remove him (Jimmy) as a director of the company. (6)
FEEDBACK
The key issue in this question relates to the grounds for the removal of a director by the board
of directors.
The relevant statutory provisions/principles:
3
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