MRL2601
Assignment 1 (COMPLETE ANSWERS)
Semester 1 2025
DUE March 2025
, ACTIVITIES
Question 1 1.1 is a shareholder of African Solar (Pty) Ltd. He believes that the board of directors is
using company funds for its personal gain. He wants to bring an action on behalf of the company
against the directors. Advise Michael briefly of the steps that must be taken to bring a derivative
action.. Two partners who are practicing as dentists, Susan and Jane, decide to dissolve their
partnership by agreement. The partnership agreement is silent regarding the goodwill of the
partnership. Jane continues practicing as a dentist and de facto takes the partnership's clients (valued
at R1 million) over for her own benefit. Susan feels it is unfair that Jane has taken over all the clients
and wishes to institute legal action to claim her part of the goodwill. Explain whether there is a
remedy at Susan's disposal in these circumstances. (5) 1.2 Name (do not discuss) five (5) different
reasons for which a partnership can be terminated. (5) Question 2 Puseletso is a member of Pusego
CC. Briefly explain to Puseletso who may represent a close corporation in terms of the Close
Corporations Act 69 of 1984, and under what circumstances a close corporation would not be bound
by a contact concluded by a member on its behalf. Tsepho approaches you for advice on the legal
nature of a trust. Briefly explain to Tsepho the legal nature of a trust. (5) 2.2 Tsepho has decided to
create a trust. Briefly explain to Tsepho the legal position of a founder in a trust.
Assignment 1 (COMPLETE ANSWERS)
Semester 1 2025
DUE March 2025
, ACTIVITIES
Question 1 1.1 is a shareholder of African Solar (Pty) Ltd. He believes that the board of directors is
using company funds for its personal gain. He wants to bring an action on behalf of the company
against the directors. Advise Michael briefly of the steps that must be taken to bring a derivative
action.. Two partners who are practicing as dentists, Susan and Jane, decide to dissolve their
partnership by agreement. The partnership agreement is silent regarding the goodwill of the
partnership. Jane continues practicing as a dentist and de facto takes the partnership's clients (valued
at R1 million) over for her own benefit. Susan feels it is unfair that Jane has taken over all the clients
and wishes to institute legal action to claim her part of the goodwill. Explain whether there is a
remedy at Susan's disposal in these circumstances. (5) 1.2 Name (do not discuss) five (5) different
reasons for which a partnership can be terminated. (5) Question 2 Puseletso is a member of Pusego
CC. Briefly explain to Puseletso who may represent a close corporation in terms of the Close
Corporations Act 69 of 1984, and under what circumstances a close corporation would not be bound
by a contact concluded by a member on its behalf. Tsepho approaches you for advice on the legal
nature of a trust. Briefly explain to Tsepho the legal nature of a trust. (5) 2.2 Tsepho has decided to
create a trust. Briefly explain to Tsepho the legal position of a founder in a trust.
