Merc law Questions with Verified Answers
Ex parte Gore NO and others NNO - CORRECT ANSWER-Group relationship introduced and abused to
harm creditors.
Even though company is part of group, still recognised as independant with own rights and obligations.
Court will disregard seperste existence where not respected( corporate veil is pierced.)
Standard Bank v Ocean Commodities - CORRECT ANSWER-Nature of a share. Bundle of personal rights
entitling the holder thereof to a certain interest in the company, its assets and dividends.
Clutchco (Pty) Ltd v Davids 2005 (HHA) - CORRECT ANSWER-Right resfused by company, but then granted
by court.
Right to certain information. Prescribed maximum charges for copying and inspection of information
amongst others.
CDH Invest v Petrotank SA(2018) - CORRECT ANSWER-Authorised number of shares can't be changed.
Amendment not in good faith.(Fiduciary duty)
Smuts v Booyens - CORRECT ANSWER-In private company, existing shareholders have first right to buy.
Gets entitled to consonant relief.
Transfer of shares.
Limitation to transferability in private company shares.
FNB v Lynn 1996(2) SA339 - CORRECT ANSWER-Cession. Ownership transfer through cession.
Intention is to transfer rights. Justa causa.
Botha v Fick 1995 (2) SA 750 - CORRECT ANSWER-Only consensus required for cession to be valid.
Mere evidence.
SA Mohair v Louw - CORRECT ANSWER-Sale of shares not void, but directors can deny to register.( so
follow procedures)
Ex parte Gore NO and others NNO - CORRECT ANSWER-Group relationship introduced and abused to
harm creditors.
Even though company is part of group, still recognised as independant with own rights and obligations.
Court will disregard seperste existence where not respected( corporate veil is pierced.)
Standard Bank v Ocean Commodities - CORRECT ANSWER-Nature of a share. Bundle of personal rights
entitling the holder thereof to a certain interest in the company, its assets and dividends.
Clutchco (Pty) Ltd v Davids 2005 (HHA) - CORRECT ANSWER-Right resfused by company, but then granted
by court.
Right to certain information. Prescribed maximum charges for copying and inspection of information
amongst others.
CDH Invest v Petrotank SA(2018) - CORRECT ANSWER-Authorised number of shares can't be changed.
Amendment not in good faith.(Fiduciary duty)
Smuts v Booyens - CORRECT ANSWER-In private company, existing shareholders have first right to buy.
Gets entitled to consonant relief.
Transfer of shares.
Limitation to transferability in private company shares.
FNB v Lynn 1996(2) SA339 - CORRECT ANSWER-Cession. Ownership transfer through cession.
Intention is to transfer rights. Justa causa.
Botha v Fick 1995 (2) SA 750 - CORRECT ANSWER-Only consensus required for cession to be valid.
Mere evidence.
SA Mohair v Louw - CORRECT ANSWER-Sale of shares not void, but directors can deny to register.( so
follow procedures)
