AUI4862 Assignment 2 (COMPLETE ANSWERS) Semester 1 2025 - DUE 2025; 100% correct solutions and explanations.

AUI4862 Assignment 2 (COMPLETE ANSWERS) Semester 1 2025 - DUE 2025; 100% correct solutions and explanations. QUESTION 1 25 marks Part A The Holiday Factory (Pty) Ltd, is a manufacturing company in the marine engineering sector. The Memorandum of Incorporation contains, among other things, the following clause: "Any director or prescribed officer of the company who has a personal financial interest in a contract in which this company has entered or will enter, either directly or indirectly, shall comply with the Companies Act 2008. The contract will be binding provided that the authority of the company in a general meeting is obtained by poll for the contract prior to the contract being entered into." The minutes of the directors’ meetings revealed the company entered into a contract with Iceland (Pty) Ltd for the purchase of 3 highly sophisticated and expensive radar systems valued at approximately R1 million each. Thabo Shabalala is a director of Holiday Factory (Pty) Ltd, and his brother Oscar is the majority shareholder of Iceland (Pty) Ltd. REQUIRED MARKS 1.1 Discuss the requirements of the Companies Act 2008 in relation to the contract entered into by Holiday Factory (Pty) Ltd with Iceland (Pty) Ltd, particularly in