MRL2601 Assignment 2 Semester 2 - 2023

MRL2601 Assignment 2 Semester 2 - 2023 QUESTION 1 Nandi and Patricia want to start a catering business together called It-out (Pty) Ltd. Briefly explain the steps which they would need to take in order to incorporate a company. (5) QUESTION 2 The board of directors of Mongalo Estates (Pty) Ltd is contemplating selling 80 per cent of the company’s assets to Hinrich Schupple, a German businessman. Indicate what right the shareholders have who do not agree with the proposed sale, and what process they must follow. (5) QUESTION 3 Briefly explain how the court assessed what the respective remedies aim to achieve, and which remedy would be more appropriate to apply when both sections 36 and 49 of the Close Corporations Act 69 of 1984 could be used in the decision of Feni v Gxothiwe and Another 2014 (1) SA 5 (ECG). (5) QUESTION 4 Good Food CC’s main business is catering. The corporation has five members: Anthea, Bert-Filandro, Carol, Daniel and Elvis. Each member holds a 20 percent member’s interest. The association agreement determines that only Daniel is authorised to represent the close corporation. Anthea enters into a contract for the purchase of a racehorse on behalf of the close corporation with Bert-Filandro. Explain whether the close corporation is bound to the transaction. (5)