LML4806
Assignment 1 (COMPLETE ANSWERS)
Semester 1 2025
DUE March 2025
, ACTIVITIES
The board of directors of Titans Ltd (“the company”) has determined that the company will acquire
up to 5% of the company’s issued shares from its various shareholders. Some of these issued shares
to be acquired by Titans Ltd are held by its directors. Advise the board of directors of the
requirements under the Companies Act 71 of 2008 that must be complied with for Titans Ltd to
acquire its own issued shares from its various shareholders and directors. Strada (pty) ltd will be
holding its first annual general at its registered office,the company's memorandum if incorporation
allows shareholders to appoint proxies to represent them at Shareholders meetings, subject to clause
10.3 of the Memorandum of board of directors. About two hours before the meeting, Busi has an
emergency to which she must attend, which makes it impossible for her to attend the annual general
meeting. With reference to the Companies Act 71 of 2008, case law and the facts above, advise Busi
whether she can validly appoint a proxy to exercise her right to vote and to express her views at the
annual general meeting of Strada (Pty) Ltd. Also consider in your answer whether clause 10.3 of the
company's Memorandum of Incorporation is a valid clause...Solomon is employed as a driver of Apex
Transport (Pty) Ltd. The company is financially distressed and has just been placed under business
rescue. Solomon is worried because he has not yet been paid his salary for the previous month,
before the business rescue proceedings commenced. He is also concerned that the business rescue
practitioner may change his terms and conditions of employment.. Big Money Ltd . (io) intends to
make a primary offer to the public in order to raise funds. The directors of Big Money Ltd are aware
of certain information that could potentially discourage the public from purchasing shares in Big
Money Ltd. After deliberation, the directors of Big Money Ltd decide not to include that information
in the prospectus. With reference to the Companies Act 71 of 2008, discuss whether the directors of
Big Money Ltd can be held personally liable to persons who acquire the securities of Big Money Ltd a
nd who may potentially suffer loss or damage as a result of the omission of that information from the
prospectus. (io)
Assignment 1 (COMPLETE ANSWERS)
Semester 1 2025
DUE March 2025
, ACTIVITIES
The board of directors of Titans Ltd (“the company”) has determined that the company will acquire
up to 5% of the company’s issued shares from its various shareholders. Some of these issued shares
to be acquired by Titans Ltd are held by its directors. Advise the board of directors of the
requirements under the Companies Act 71 of 2008 that must be complied with for Titans Ltd to
acquire its own issued shares from its various shareholders and directors. Strada (pty) ltd will be
holding its first annual general at its registered office,the company's memorandum if incorporation
allows shareholders to appoint proxies to represent them at Shareholders meetings, subject to clause
10.3 of the Memorandum of board of directors. About two hours before the meeting, Busi has an
emergency to which she must attend, which makes it impossible for her to attend the annual general
meeting. With reference to the Companies Act 71 of 2008, case law and the facts above, advise Busi
whether she can validly appoint a proxy to exercise her right to vote and to express her views at the
annual general meeting of Strada (Pty) Ltd. Also consider in your answer whether clause 10.3 of the
company's Memorandum of Incorporation is a valid clause...Solomon is employed as a driver of Apex
Transport (Pty) Ltd. The company is financially distressed and has just been placed under business
rescue. Solomon is worried because he has not yet been paid his salary for the previous month,
before the business rescue proceedings commenced. He is also concerned that the business rescue
practitioner may change his terms and conditions of employment.. Big Money Ltd . (io) intends to
make a primary offer to the public in order to raise funds. The directors of Big Money Ltd are aware
of certain information that could potentially discourage the public from purchasing shares in Big
Money Ltd. After deliberation, the directors of Big Money Ltd decide not to include that information
in the prospectus. With reference to the Companies Act 71 of 2008, discuss whether the directors of
Big Money Ltd can be held personally liable to persons who acquire the securities of Big Money Ltd a
nd who may potentially suffer loss or damage as a result of the omission of that information from the
prospectus. (io)
