LML4806
Assignment 1 Semester 1 2025
Unique number:
Due Date: March 2025
This document includes:
Helpful answers and guidelines
Detailed explanations and/ or calculations
References
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+27 68 812 0934
,© Study Shack 2024. All rights Reserved +27 68 812 0934
, QUESTION 1 (2 ANSWERS PROVIDED)
Companies Act 71 of 2008, section 58 shareholders are entitled to appoint a
proxy to represent them at a shareholders' meeting if they are unable to
attend. This right allows a shareholder to delegate their rights to another
person who may attend, speak, and vote on their behalf.
Section 58(1) of the Companies Act expressly states that a shareholder may
appoint another person as their proxy to participate in, speak, and vote at a
shareholders’ meeting. The proxy does not have to be a shareholder of the
company. This means that Busi can appoint any person she chooses to act on
her behalf at the annual general meeting (AGM) of Strada (Pty) Ltd.
The requirements for a valid proxy appointment under section 58(2) are:
1. The appointment must be in writing, dated, and signed by the
shareholder.
2. The appointment remains valid for one year, unless a shorter period is
stipulated.
3. The proxy must be delivered to the company before the proxy
exercises any rights at the meeting.
As long as Busi meets these requirements, she can validly appoint a proxy to
vote and express her views at the AGM. Given that there is still two hours
before the meeting, she has enough time to draft and submit a written and
signed proxy appointment to the company.
Clause 10.3 of the Memorandum of Incorporation
The Memorandum of Incorporation (MOI) of Strada (Pty) Ltd governs the
company's internal affairs and may alter certain rights of shareholders,
provided that such modifications are consistent with the Companies Act.
However, section 58(1) of the Companies Act states that the right to appoint a
proxy may not be limited or restricted in any way by the MOI. This means that
if clause 10.3 attempts to impose restrictions on a shareholder’s right to
appoint a proxy, such as requiring board approval or limiting who may be
© Study Shack 2024. All rights Reserved +27 68 812 0934
Assignment 1 Semester 1 2025
Unique number:
Due Date: March 2025
This document includes:
Helpful answers and guidelines
Detailed explanations and/ or calculations
References
Connect with the tutor on
+27 68 812 0934
,© Study Shack 2024. All rights Reserved +27 68 812 0934
, QUESTION 1 (2 ANSWERS PROVIDED)
Companies Act 71 of 2008, section 58 shareholders are entitled to appoint a
proxy to represent them at a shareholders' meeting if they are unable to
attend. This right allows a shareholder to delegate their rights to another
person who may attend, speak, and vote on their behalf.
Section 58(1) of the Companies Act expressly states that a shareholder may
appoint another person as their proxy to participate in, speak, and vote at a
shareholders’ meeting. The proxy does not have to be a shareholder of the
company. This means that Busi can appoint any person she chooses to act on
her behalf at the annual general meeting (AGM) of Strada (Pty) Ltd.
The requirements for a valid proxy appointment under section 58(2) are:
1. The appointment must be in writing, dated, and signed by the
shareholder.
2. The appointment remains valid for one year, unless a shorter period is
stipulated.
3. The proxy must be delivered to the company before the proxy
exercises any rights at the meeting.
As long as Busi meets these requirements, she can validly appoint a proxy to
vote and express her views at the AGM. Given that there is still two hours
before the meeting, she has enough time to draft and submit a written and
signed proxy appointment to the company.
Clause 10.3 of the Memorandum of Incorporation
The Memorandum of Incorporation (MOI) of Strada (Pty) Ltd governs the
company's internal affairs and may alter certain rights of shareholders,
provided that such modifications are consistent with the Companies Act.
However, section 58(1) of the Companies Act states that the right to appoint a
proxy may not be limited or restricted in any way by the MOI. This means that
if clause 10.3 attempts to impose restrictions on a shareholder’s right to
appoint a proxy, such as requiring board approval or limiting who may be
© Study Shack 2024. All rights Reserved +27 68 812 0934
