, LML4806 Assignment 2 (COMPLETE ANSWERS)
Semester 2 2025 - DUE September 2025; 100%
TRUSTED Complete, trusted solutions and
explanations.
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.
1. Introduction
The case of Internet World (Pty) Ltd v Lerato raises important issues regarding
the fiduciary duties of directors under the Companies Act 71 of 2008, South
African common law, and corporate governance principles. The central issue is
whether Lerato, who was a director of Internet World (Pty) Ltd, breached her
fiduciary duties by concluding a profitable contract with Skylab (Pty) Ltd in her
personal capacity after having conducted negotiations on behalf of Internet World.
Her defence—that she only concluded the contract after her resignation—requires
close scrutiny, particularly with reference to the concept of "corporate opportunity"
and directors’ post-resignation duties.
2. Fiduciary Duties of Directors Under South African Law
2.1. Statutory Duties in the Companies Act
The Companies Act 71 of 2008 imposes both fiduciary duties and duties of care,
skill, and diligence on directors. The relevant provisions include:
Section 75: Relates to conflicts of interest and requires a director to disclose
any personal financial interest in a matter concerning the company.
Semester 2 2025 - DUE September 2025; 100%
TRUSTED Complete, trusted solutions and
explanations.
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.
1. Introduction
The case of Internet World (Pty) Ltd v Lerato raises important issues regarding
the fiduciary duties of directors under the Companies Act 71 of 2008, South
African common law, and corporate governance principles. The central issue is
whether Lerato, who was a director of Internet World (Pty) Ltd, breached her
fiduciary duties by concluding a profitable contract with Skylab (Pty) Ltd in her
personal capacity after having conducted negotiations on behalf of Internet World.
Her defence—that she only concluded the contract after her resignation—requires
close scrutiny, particularly with reference to the concept of "corporate opportunity"
and directors’ post-resignation duties.
2. Fiduciary Duties of Directors Under South African Law
2.1. Statutory Duties in the Companies Act
The Companies Act 71 of 2008 imposes both fiduciary duties and duties of care,
skill, and diligence on directors. The relevant provisions include:
Section 75: Relates to conflicts of interest and requires a director to disclose
any personal financial interest in a matter concerning the company.
