FBE2604
Assignment 1 Semester 2 2025
2 2025
Unique Number:
Due date: August 2025
QUESTION 1
1.1. (2 ANSWERS PROVIDED)
A partnership and a company are two very different business forms in South African law,
particularly in relation to their legal personality, formation, liability, continuity, and ownership
of assets. A company is a separate legal or juristic person that comes into existence through
incorporation in terms of the Companies Act. This means it has its own rights and duties,
can own property in its own name, and can sue or be sued without involving its shareholders
personally. Shareholders in a company are not personally liable for the debts of the
company, as they enjoy the protection of limited liability. The assets of a company belong
exclusively to the company, and shareholders have no direct proprietary rights in them.
Profits made by the company belong to the company itself and can only be distributed to
shareholders once a dividend has been declared. A change in the membership of a
company does not affect its existence, so it can continue operating indefinitely regardless of
changes in ownership.
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
Assignment 1 Semester 2 2025
2 2025
Unique Number:
Due date: August 2025
QUESTION 1
1.1. (2 ANSWERS PROVIDED)
A partnership and a company are two very different business forms in South African law,
particularly in relation to their legal personality, formation, liability, continuity, and ownership
of assets. A company is a separate legal or juristic person that comes into existence through
incorporation in terms of the Companies Act. This means it has its own rights and duties,
can own property in its own name, and can sue or be sued without involving its shareholders
personally. Shareholders in a company are not personally liable for the debts of the
company, as they enjoy the protection of limited liability. The assets of a company belong
exclusively to the company, and shareholders have no direct proprietary rights in them.
Profits made by the company belong to the company itself and can only be distributed to
shareholders once a dividend has been declared. A change in the membership of a
company does not affect its existence, so it can continue operating indefinitely regardless of
changes in ownership.
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
