LML4806
ASSIGNMENT 2
SEMESTER 1
ANSWERS 2026
LML4806 ASSIGNMENT 2 SEMESTER 1
ANSWERS 2026
, LML4806
Semester 1 Assignment 2 – 2026
In the meantime, here is a concise framework you can use to answer both
parts, using the typical SA Companies Act 71 of 2008 concepts. I’ve noted
where facts will matter.
1.1 Identify the type of transaction contemplated and whether the involved
companies are regulated companies for purposes of the Companies Act 71 of
2008
- How to identify the type of transaction
- If the transaction is a sale of a substantial part of the business or a disposal of
assets outside the ordinary course, or a restructuring to bring about a
merger/acquisition under a court-sanctioned plan, you may be looking at a scheme
of arrangement or a merger-style transaction (often requiring a special resolution
and, in many cases, court approval).
- If the transaction is a merger or acquisition of shares/ownership between two
companies, and especially if it involves a related party, you may be looking at a
related-party transaction or a take-over-style arrangement (which in SA is also
subject to regulatory oversight if it falls under the Takeover Regulations Panel).
- If the transaction is a restructuring or plan to rescue or reorganise the company
(eg, business rescue or reorganisation), that would be a different regime under the
Companies Act (Chapter 6 and related provisions) than a straight acquisition or sale.
- Important to check: does the transaction require a special resolution (often 75%)
or court sanction? If yes, it is typically a scheme of arrangement or a similar court-
driven process.
- Are the involved companies “regulated” companies under the Act?
- Under the Companies Act 2008, the concept of “regulated companies” is tied to
certain transactions that may fall under the Takeover Regulations Panel (TRP) or
other sectoral regulators when the deal involves public companies or regulated
industries.
- In practical terms:
ASSIGNMENT 2
SEMESTER 1
ANSWERS 2026
LML4806 ASSIGNMENT 2 SEMESTER 1
ANSWERS 2026
, LML4806
Semester 1 Assignment 2 – 2026
In the meantime, here is a concise framework you can use to answer both
parts, using the typical SA Companies Act 71 of 2008 concepts. I’ve noted
where facts will matter.
1.1 Identify the type of transaction contemplated and whether the involved
companies are regulated companies for purposes of the Companies Act 71 of
2008
- How to identify the type of transaction
- If the transaction is a sale of a substantial part of the business or a disposal of
assets outside the ordinary course, or a restructuring to bring about a
merger/acquisition under a court-sanctioned plan, you may be looking at a scheme
of arrangement or a merger-style transaction (often requiring a special resolution
and, in many cases, court approval).
- If the transaction is a merger or acquisition of shares/ownership between two
companies, and especially if it involves a related party, you may be looking at a
related-party transaction or a take-over-style arrangement (which in SA is also
subject to regulatory oversight if it falls under the Takeover Regulations Panel).
- If the transaction is a restructuring or plan to rescue or reorganise the company
(eg, business rescue or reorganisation), that would be a different regime under the
Companies Act (Chapter 6 and related provisions) than a straight acquisition or sale.
- Important to check: does the transaction require a special resolution (often 75%)
or court sanction? If yes, it is typically a scheme of arrangement or a similar court-
driven process.
- Are the involved companies “regulated” companies under the Act?
- Under the Companies Act 2008, the concept of “regulated companies” is tied to
certain transactions that may fall under the Takeover Regulations Panel (TRP) or
other sectoral regulators when the deal involves public companies or regulated
industries.
- In practical terms:
