, FBE2604 Assignment 2 (COMPLETE ANSWERS) Semester
1 2025 - DUE April 2025; 100% correct solutions and
explanations.
Question: 1 Pat and his two sons, Rick and Dave are discussing
the legal attributes of a trust. Pat thinks that trusts have a
separate legal existence. Rick is of the view that there is no
distinction drawn between trust assets and private assets of the
trustee even though a trustee is legally the owner of the trust
assets. Dave on the other hand, holds the opinion that parties to a
trust may lose more than what is held in the trust. They approach
you for advice on the legal attributes of a trust. Advise them
accordingly. (In your advice, define a trust, deal with each view
as presented and then conclude). QUESTION
1 1.1 Briefly explian to two prospective businessmen, Thandeka
and Mike, whether or not the requirements for piercing of the
corporate veil in terms of the Companies Act 71 of 2008 and the
Close Corporations Act 69 of 1984 are identical. Refer to case
law in your answer. (5) 1.2 Frank is an IT specialist. He wishes
to incorporate a company for his business. He does not want to
offer any securities to the public.
1.2.1 Advise Frank on the type of company that would be the
most suitable for his needs and briefly explain to him what the
characteristics of such a company are. (5)
1.2.2 Frank sees an office space that will be perfect for his IT
business. He wants to purchase this office space on behalf of the
proposed company. Advise Frank regarding the requirements of
the Companies Act 71 of 2008 that must be complied with when
1 2025 - DUE April 2025; 100% correct solutions and
explanations.
Question: 1 Pat and his two sons, Rick and Dave are discussing
the legal attributes of a trust. Pat thinks that trusts have a
separate legal existence. Rick is of the view that there is no
distinction drawn between trust assets and private assets of the
trustee even though a trustee is legally the owner of the trust
assets. Dave on the other hand, holds the opinion that parties to a
trust may lose more than what is held in the trust. They approach
you for advice on the legal attributes of a trust. Advise them
accordingly. (In your advice, define a trust, deal with each view
as presented and then conclude). QUESTION
1 1.1 Briefly explian to two prospective businessmen, Thandeka
and Mike, whether or not the requirements for piercing of the
corporate veil in terms of the Companies Act 71 of 2008 and the
Close Corporations Act 69 of 1984 are identical. Refer to case
law in your answer. (5) 1.2 Frank is an IT specialist. He wishes
to incorporate a company for his business. He does not want to
offer any securities to the public.
1.2.1 Advise Frank on the type of company that would be the
most suitable for his needs and briefly explain to him what the
characteristics of such a company are. (5)
1.2.2 Frank sees an office space that will be perfect for his IT
business. He wants to purchase this office space on behalf of the
proposed company. Advise Frank regarding the requirements of
the Companies Act 71 of 2008 that must be complied with when
