FBE2604 Assignment 1 (COMPLETE ANSWERS) Semester 2 2025 - DUE August 2025

FBE2604 Assignment 1 (COMPLETE ANSWERS) Semester 2 2025 - DUE August 2025 QUESTION 1 Zipper (Pty) Ltd does not have a company secretary. Explain whether or not it is necessary to appoint a company secretary. Also list three duties of a company secretary. (5) Senzo, Paul, Salim and Renster are employees of Haze Ltd. Haze Ltd makes loans to Senzo, Salim and Mariam (an existing member) to enable them to subscribe to shares of the company. Sam wants to incorporate a business entity. He is uncertain whether he should incorporate a partnership or a company. 1.1 Briefly explain the differences between a partnership and a company to him. (10) 1.2 Suppose Sam decides to form a partnership. Indicate to him what the essentialia of a partnership entails. (5Explain the requirements that must be adhered to in terms of the Companies Act 71 2008 to validly provide financial assistance? The board of directors of Tando Estates (Pty) Ltd is contemplating selling 80 per cent of the company’s assets to Brian, a Johannesburg businessman. Indicate what right the shareholders have who do not agree with the proposed sale, and briefly set out the process that they must follow. Nandi and Patricia want to start a catering business together called It-out (Pty) Ltd. Briefly explain the steps which they would need to take in order to incorporate a company. (5) Suppose Sam decides to form a partnership. Indicate to him what the essentialia of a partnership entails. QUESTION 2 The main object of ABC (Pty) Ltd is manufacturing of furniture. Its Memorandum of Incorporation provides that the board of directors may appoint a managing director who will be authorised to enter into contracts on behalf of the company. However, should the contract exceed the amount of R150 000, prior consent of the general meeting is required. Godfried, the current managing director of ABC (Pty) Ltd, buys a beach house for R350 000 from Bonang on behalf of ABC (Pty) Ltd. Explain whether or not ABC (Pty) Ltd can raise the restrictions to its capacity as contained in its Memorandum of Incorporation as grounds to avoid being bound to the contract. Sam wants to incorporate a business entity. He is uncertain whether he should incorporate a partnership or a company. 1.1 Briefly explain the differences between a partnership and a company to him.