MRL2601 ASSIGNMENT 2 SEMESTER 2 - 2023 (588481)

MRL2601 ASSIGNMENT 2
SEMESTER 2 - 2023
UNIQUE NUMBER: 588481


DUE DATE: 05 SEPTEMBER 2023

, ASSIGNMENT 2

UNIQUE NUMBER: 588481

CLOSING DATE: 05 SEPTEMBER 2023

MARKS: 20



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.




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