AUE 1601 ASSIGNMENT 2

AUE1601 Assignment 2 QUESTION 1 1.1 The companies Act requirements that should be met on the issue of 150 000 shares by Property Invest’s Board of Directors include the following ;  The board of directors has authority to issue shares to both shareholders and Realty Invest (Pty) Ltd the subsidiary of by Property Invest.  Shareholders must receive a notice for the issue of shares to Realty Invest (Pty) Ltd the subsidiary of by Property Invest.  A special resolution is required to approve the issue of shares to Realty Invest (Pty) Ltd the subsidiary of by Property Invest.  A director’s resolution is required on issuing shares to both shareholders and Realty Invest(Pty) Ltd the subsidiary of by Property Invest.  Soon after the issue of 150 000 shares; issued shares must not exceed authorized shares of 100 000 shares.  Voting and quorum requirements must be met.  Realty Invest (Pty) Ltd is permitted to purchase shares in Property Invest the holding company but soon after the purchase of shares, all shares owned by subsidiaries in Property Invest must not in aggregate exceed 10% of total issued shares of Property Invest.  Subsidiaries may not exercise voting rights in terms of these shares 1.2 With regards to issuing shares in excess of authorized shares, in order to comply with the Companies Act, Property Invest needs to do the following: This study source was downloaded by from CourseH on :58:10 GMT -05:00 This s