lOMoAR cPSD| 52021443
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QUESTION 1 [10]
Complete the sentences in this question by filling in
the correct word/s or term/s.
1.1 The …….…………………… is the person
responsible for drawing up the financial
statements in a close corporation. (2)
1.2 A(n) …….…………………… is one of the units
into which the proprietary interest
in a profit company is divided
(2)
1.3 A(n) …….…………………… is the person who
is appointed to represent a shareholder at a
meeting. (2)
1.4 The …….…………………… is the date on which
a company determines the identity of its
shareholders and their shareholding for purposes
of establishing who
is entitled to shareholder rights. (2)
1.5 The …….…………………… is the principal
administrative officer of a company.
(2)
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QUESTION 2 [30]
2.1 Beauty and Phineas each hold shares in Veritaste
(Pty) Ltd. The only other shareholder is Bongiwe,
who is a preference shareholder without any voting
rights. Beauty and Phineas are also the only two
directors of Veritaste (Pty) Ltd. Veritaste (Pty)
Ltd’s Memorandum of Incorporation provides that
the shareholders, in a shareholders’ meeting, must
approve the dividends proposed by the board of
directors. At a meeting of the board of directors,
Beauty and Phineas agree that the company must
declare a dividend of 50 cents per share.
With reference to the given set of facts, answer the
following questions:
2.1.1 What type of company is Veritaste (Pty) Ltd?
Also mention the distinctive
characteristics of this type of company.
(5)
2.1.2 Explain, with reference to the Companies Act 71
of 2008, whether it is possible for Beauty and
Phineas to pass the resolution to declare
dividends without convening a meeting of
shareholders. Refer to relevant case law in your
answer.
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(8)
2.1.3 List the legal requirements under the Companies
Act 71 of 2008 that must be complied with before
a company may validly declare and pay a
dividend. (7)
2.2 Alice, Precious and Zaiboon are three friends who
wish to start their own company. While driving
one Saturday afternoon, Zaiboon comes across
the perfect office building. She wishes to
purchase this building on behalf of the proposed
company. Advise Zaiboon on the requirements
that need to be adhered to in terms of the
Companies Act 71 of 2008 to conclude a valid
and binding contract on behalf of the company
before its incorporation.
(5)
2.3 Explain whether Windex Ltd is required to hold
an annual general meeting.
(2)
2.4 List three (3) grounds on which an application can
be brought against a director for an order
Downloaded by Master Vincent ()
Downloaded by Master Vincent ()
, lOMoAR cPSD| 52021443
QUESTION 1 [10]
Complete the sentences in this question by filling in
the correct word/s or term/s.
1.1 The …….…………………… is the person
responsible for drawing up the financial
statements in a close corporation. (2)
1.2 A(n) …….…………………… is one of the units
into which the proprietary interest
in a profit company is divided
(2)
1.3 A(n) …….…………………… is the person who
is appointed to represent a shareholder at a
meeting. (2)
1.4 The …….…………………… is the date on which
a company determines the identity of its
shareholders and their shareholding for purposes
of establishing who
is entitled to shareholder rights. (2)
1.5 The …….…………………… is the principal
administrative officer of a company.
(2)
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, lOMoAR cPSD| 52021443
QUESTION 2 [30]
2.1 Beauty and Phineas each hold shares in Veritaste
(Pty) Ltd. The only other shareholder is Bongiwe,
who is a preference shareholder without any voting
rights. Beauty and Phineas are also the only two
directors of Veritaste (Pty) Ltd. Veritaste (Pty)
Ltd’s Memorandum of Incorporation provides that
the shareholders, in a shareholders’ meeting, must
approve the dividends proposed by the board of
directors. At a meeting of the board of directors,
Beauty and Phineas agree that the company must
declare a dividend of 50 cents per share.
With reference to the given set of facts, answer the
following questions:
2.1.1 What type of company is Veritaste (Pty) Ltd?
Also mention the distinctive
characteristics of this type of company.
(5)
2.1.2 Explain, with reference to the Companies Act 71
of 2008, whether it is possible for Beauty and
Phineas to pass the resolution to declare
dividends without convening a meeting of
shareholders. Refer to relevant case law in your
answer.
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, lOMoAR cPSD| 52021443
(8)
2.1.3 List the legal requirements under the Companies
Act 71 of 2008 that must be complied with before
a company may validly declare and pay a
dividend. (7)
2.2 Alice, Precious and Zaiboon are three friends who
wish to start their own company. While driving
one Saturday afternoon, Zaiboon comes across
the perfect office building. She wishes to
purchase this building on behalf of the proposed
company. Advise Zaiboon on the requirements
that need to be adhered to in terms of the
Companies Act 71 of 2008 to conclude a valid
and binding contract on behalf of the company
before its incorporation.
(5)
2.3 Explain whether Windex Ltd is required to hold
an annual general meeting.
(2)
2.4 List three (3) grounds on which an application can
be brought against a director for an order
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