MRL2601 Assignment 2
(COMPLETE ANSWERS)
Semester 1 2025 - DUE April
2025
100% GUARANTEED
, MRL2601 Assignment 2 (COMPLETE
ANSWERS) Semester 1 2025 - DUE April
2025
Question 1 Cool Coals (Pty) Ltd operates within a
poor community and made three times the usual
profit at the end of 2024. The board of directors of
Cool Coals (Pty) Ltd debates whether the company
should issue university bursaries to learners who
have completed grade 12 in 2024 in the
community. Some of the directors are opposed to
this view. They claim that the company should be
managed exclusively in the interests of the
shareholders with the result that: (a) the interests
of other stakeholders such as the community and
its grade 12 learners cannot be taken into account;
and (b) all the profits of the company must be
distributed to the shareholders of Cool Coals (Pty)
Ltd. As the company secretary, the board of the
company approaches you for advice. With
reference to the principle of Ubuntu as expressed
by Madala J in the case of S v Makwanyane 1995
(6) BCLR 665 (CC) and the facts in the scenario
above, advise the board of Cool Coals (Pty) Ltd on
whether the payment of university bursaries may
be justified on the basis of the principle of Ubuntu,
or whether the profits of the company should be
distributed exclusively to its shareholders. (5)
(COMPLETE ANSWERS)
Semester 1 2025 - DUE April
2025
100% GUARANTEED
, MRL2601 Assignment 2 (COMPLETE
ANSWERS) Semester 1 2025 - DUE April
2025
Question 1 Cool Coals (Pty) Ltd operates within a
poor community and made three times the usual
profit at the end of 2024. The board of directors of
Cool Coals (Pty) Ltd debates whether the company
should issue university bursaries to learners who
have completed grade 12 in 2024 in the
community. Some of the directors are opposed to
this view. They claim that the company should be
managed exclusively in the interests of the
shareholders with the result that: (a) the interests
of other stakeholders such as the community and
its grade 12 learners cannot be taken into account;
and (b) all the profits of the company must be
distributed to the shareholders of Cool Coals (Pty)
Ltd. As the company secretary, the board of the
company approaches you for advice. With
reference to the principle of Ubuntu as expressed
by Madala J in the case of S v Makwanyane 1995
(6) BCLR 665 (CC) and the facts in the scenario
above, advise the board of Cool Coals (Pty) Ltd on
whether the payment of university bursaries may
be justified on the basis of the principle of Ubuntu,
or whether the profits of the company should be
distributed exclusively to its shareholders. (5)
