, LML4806 Assignment 2 (COMPLETE ANSWERS) Semester 2 2025
– DUE September 2025; 100% CORRECT AND TRUSTED
SOLUTIONS
Question 1
With reference to the Companies Act 71 of 2008, relevant case law and the facts provided,
discuss whether Lerato has breached any specific fiduciary duties she owed to Internet
World (Pty) Ltd. Also consider the validity of Lerato’s argument that she did not breach
her fiduciary duties to Internet World (Pty) Ltd since she signed the contract with Skylab
(Pty) Ltd only after she had resigned from Internet World (Pty) Ltd.
(15 marks)
To determine whether Lerato breached her fiduciary duties to
Internet World (Pty) Ltd, we must consider the Companies Act 71 of
2008, the common law principles of fiduciary duty, and relevant case
law. The key issues are:
1. Whether Lerato owed a fiduciary duty to Internet World (Pty) Ltd;
2. Whether her conduct amounted to a breach of those duties;
3. Whether her resignation absolves her of liability.
1. Fiduciary Duties of Directors under the Companies Act 71 of 2008
Section 76(3)(a) and (b) of the Companies Act imposes two key duties
on directors:
Section 76(3)(a): A director must exercise their powers and
perform their functions in good faith and for a proper purpose.
Section 76(3)(b): A director must act in the best interests of the
company.
Furthermore, Section 76(2)(a) states that a director must not use their
position or any information gained as a director to gain an advantage
– DUE September 2025; 100% CORRECT AND TRUSTED
SOLUTIONS
Question 1
With reference to the Companies Act 71 of 2008, relevant case law and the facts provided,
discuss whether Lerato has breached any specific fiduciary duties she owed to Internet
World (Pty) Ltd. Also consider the validity of Lerato’s argument that she did not breach
her fiduciary duties to Internet World (Pty) Ltd since she signed the contract with Skylab
(Pty) Ltd only after she had resigned from Internet World (Pty) Ltd.
(15 marks)
To determine whether Lerato breached her fiduciary duties to
Internet World (Pty) Ltd, we must consider the Companies Act 71 of
2008, the common law principles of fiduciary duty, and relevant case
law. The key issues are:
1. Whether Lerato owed a fiduciary duty to Internet World (Pty) Ltd;
2. Whether her conduct amounted to a breach of those duties;
3. Whether her resignation absolves her of liability.
1. Fiduciary Duties of Directors under the Companies Act 71 of 2008
Section 76(3)(a) and (b) of the Companies Act imposes two key duties
on directors:
Section 76(3)(a): A director must exercise their powers and
perform their functions in good faith and for a proper purpose.
Section 76(3)(b): A director must act in the best interests of the
company.
Furthermore, Section 76(2)(a) states that a director must not use their
position or any information gained as a director to gain an advantage
