, LML4806 Assignment 1 (COMPLETE ANSWERS) Semester 2 2025 –
DUE August 2025; 100% CORRECT AND TRUSTED SOLUTIONS
Question 1
You are approached by Stefan, the chairperson of the board of directors of JP
Textiles Ltd, for legal advice. He informs you that JP Textiles Ltd will be
holding its fifth annual general meeting (AGM) next month at its registered
office in Johannesburg. He further informs you that the board of directors is
concerned that a significant number of the company’s shareholders and
shareholder proxies who are based outside Johannesburg and overseas will not
be able to travel to Johannesburg to attend the AGM in person (physically) at
the company’s registered office.
Required:
Advise Stefan on what the company could do to ensure that it provides a
reasonable opportunity for all the shareholders and shareholder proxies to
attend and participate at its fifth AGM.
To advise Stefan on how JP Textiles Ltd can ensure that all shareholders and
shareholder proxies are provided with a reasonable opportunity to attend and
participate in its fifth Annual General Meeting (AGM), we must consider the
requirements of the Companies Act 71 of 2008 (the "Act") and modern practices
regarding shareholder participation.
1. Legal Framework under the Companies Act 71 of 2008
Section 61(7) of the Act provides that:
"Every shareholders meeting of a public company must be reasonably accessible
within South Africa for electronic participation by shareholders or their proxies."
This provision is designed to ensure that shareholders are not disadvantaged due to
their geographical location and can effectively exercise their rights at general
meetings.
2. Use of Electronic Communication
DUE August 2025; 100% CORRECT AND TRUSTED SOLUTIONS
Question 1
You are approached by Stefan, the chairperson of the board of directors of JP
Textiles Ltd, for legal advice. He informs you that JP Textiles Ltd will be
holding its fifth annual general meeting (AGM) next month at its registered
office in Johannesburg. He further informs you that the board of directors is
concerned that a significant number of the company’s shareholders and
shareholder proxies who are based outside Johannesburg and overseas will not
be able to travel to Johannesburg to attend the AGM in person (physically) at
the company’s registered office.
Required:
Advise Stefan on what the company could do to ensure that it provides a
reasonable opportunity for all the shareholders and shareholder proxies to
attend and participate at its fifth AGM.
To advise Stefan on how JP Textiles Ltd can ensure that all shareholders and
shareholder proxies are provided with a reasonable opportunity to attend and
participate in its fifth Annual General Meeting (AGM), we must consider the
requirements of the Companies Act 71 of 2008 (the "Act") and modern practices
regarding shareholder participation.
1. Legal Framework under the Companies Act 71 of 2008
Section 61(7) of the Act provides that:
"Every shareholders meeting of a public company must be reasonably accessible
within South Africa for electronic participation by shareholders or their proxies."
This provision is designed to ensure that shareholders are not disadvantaged due to
their geographical location and can effectively exercise their rights at general
meetings.
2. Use of Electronic Communication
