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PREVIEW
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.
DISTINCTION Footnotes and/or Bibliography
GUARANTEED!!! included. *
Disclaimer
Extreme care has been used by our Tutors to draft this document, however the contents are provided “as is” without any representations or warranties,
express or implied. This document is to be used for comparison, research, and reference purposes ONLY. No part of this document may be reproduced,
resold, or transmitted in any form or by any means without prior written permission from the Author. By making use of this document, you agree to fully
accept the consequences should you plagiarise or misuse this document. – STUDY BUDDY TUTOR SA
PAST PAPERS & MEMOS, ASSIGNMENT MEMOS, NOTES, SUMMARIES & TUITIONS.
Cell: 062 810 8624 Email:
, ASSIGNMENT 2
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)
TOTAL: 20
PREVIEW
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.
DISTINCTION Footnotes and/or Bibliography
GUARANTEED!!! included. *
Disclaimer
Extreme care has been used by our Tutors to draft this document, however the contents are provided “as is” without any representations or warranties,
express or implied. This document is to be used for comparison, research, and reference purposes ONLY. No part of this document may be reproduced,
resold, or transmitted in any form or by any means without prior written permission from the Author. By making use of this document, you agree to fully
accept the consequences should you plagiarise or misuse this document. – STUDY BUDDY TUTOR SA
PAST PAPERS & MEMOS, ASSIGNMENT MEMOS, NOTES, SUMMARIES & TUITIONS.
Cell: 062 810 8624 Email:
, ASSIGNMENT 2
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)
TOTAL: 20
