MRL2601 ASSIGNMENT 2
QUESTION 1
As established under Section 54 of the Close Corporations Act 69 of 1984 any member
of the corporation is considered to be the special agent of the close corporation when
it interacts with third parties, as reflected in the task statements. This signifies that
action taken by a member commits the corporation, even if the action does not pertain
to the course of business of the corporation. However, there is no further liability on
the part of the corporation if the member was not authorized and the third person knew,
or should have known, that he was not so authorized.
In J & K Timbers (Pty) Ltd v GL & S Furniture Enterprises CC 2005 (3) SA 223 (N)
authority to act on behalf of a corporate body is implied on every member and even
though permission is not granted any member can act as an agent of the corporation,
until the third person had notice or about to have notice regarding the absence of the
said authority.
QUESTION 1
As established under Section 54 of the Close Corporations Act 69 of 1984 any member
of the corporation is considered to be the special agent of the close corporation when
it interacts with third parties, as reflected in the task statements. This signifies that
action taken by a member commits the corporation, even if the action does not pertain
to the course of business of the corporation. However, there is no further liability on
the part of the corporation if the member was not authorized and the third person knew,
or should have known, that he was not so authorized.
In J & K Timbers (Pty) Ltd v GL & S Furniture Enterprises CC 2005 (3) SA 223 (N)
authority to act on behalf of a corporate body is implied on every member and even
though permission is not granted any member can act as an agent of the corporation,
until the third person had notice or about to have notice regarding the absence of the
said authority.
