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MRL2601 Assignment 2 (COMPLETE ANSWERS) Semester 1 2025 - DUE April 2025

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MRL2601 Assignment 2 (COMPLETE ANSWERS) Semester 1 2025 - DUE April 2025; 100% TRUSTED Complete, trusted solutions and explanations. For assistance, Whats-App 0.6.7-1.7.1-1.7.3.9. Ensure your success with us... Question 1 Cool Coals (Pty) Ltd operates within a poor community and made three times the usual profit at the end of 2024. The board of directors of Cool Coals (Pty) Ltd debates whether the company should issue university bursaries to learners who have completed grade 12 in 2024 in the community. Some of the directors are opposed to this view. They claim that the company should be managed exclusively in the interests of the shareholders with the result that: (a) the interests of other stakeholders such as the community and its grade 12 learners cannot be taken into account; and (b) all the profits of the company must be distributed to the shareholders of Cool Coals (Pty) Ltd. As the company secretary, the board of the company approaches you for advice. With reference to the principle of Ubuntu as expressed by Madala J in the case of S v Makwanyane 1995 (6) BCLR 665 (CC) and the facts in the scenario above, advise the board of Cool Coals (Pty) Ltd on whether the payment of university bursaries may be justified on the basis of the principle of Ubuntu, or whether the profits of the company should be distributed exclusively to its shareholders. (5) Question 2 With reference to the relevant case law and appropriate sources, explain the legal consequences of a company’s separate legal personality. (10) Question 3 Briefly explain, with reference to the relevant sources, the scope of discretion that a court has in making an order to assist a member whose rights are unfairly and prejudicially affected by a close corporation’s conduct or by the conduct of one or more of the other members of the close corporation. (5)

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MRL2601
Assignment 2 Semester 1 2025
Detailed Solutions, References & Explanations

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Due Date: April 2025

QUESTION 1



The principle of ubuntu, as articulated by Madala J in S v Makwanyane 1995 (6) BCLR 665
(CC), emphasizes social justice, fairness, and a sense of shared humanity. Ubuntu dictates
that individuals and entities should act in ways that benefit the broader community rather than
focusing solely on self-interest. This principle challenges the view that a company should
operate exclusively for shareholder profit, advocating instead for corporate responsibility and
community development.

In the case of Cool Coals (Pty) Ltd, the directors’ argument that the company should serve
only shareholder interests disregards its broader social obligations.




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Connected book
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Piet A. Delport New Entrepreneurial Law
Publisher: 2014 ISBN: 9780409118179 Edition: Unknown

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