, LML4806 Assignment 1
Semester 2 2025
DUE September 2025
Use this document as a guide and for references to answer your assignment
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.
To determine whether Lerato has breached any specific fiduciary duties to Internet World
(Pty) Ltd, we must analyze her conduct in terms of the Companies Act 71 of 2008 (―the
Act‖), common law principles, and relevant case law. The primary focus will be on the
fiduciary duties imposed upon directors under the Act and common law, and whether
these obligations extend beyond a director’s formal resignation. In evaluating Lerato’s
argument that she signed the contract only after resigning, it is also necessary to consider
the broader principle of when fiduciary duties may persist beyond resignation, especially
in circumstances involving corporate opportunity.
1. Fiduciary Duties of Directors Under the Companies Act 71 of 2008
The Companies Act codifies certain common law fiduciary duties and further imposes
statutory duties on directors. Sections 75 and 76 of the Act are particularly relevant.
Section 76: Standards of Directors’ Conduct
Section 76(3) of the Act states that a director must:
Exercise their powers and perform their functions in good faith and for a proper
purpose;
Act in the best interests of the company; and
Act with the degree of care, skill and diligence that may reasonably be expected of
someone in their position.
Semester 2 2025
DUE September 2025
Use this document as a guide and for references to answer your assignment
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.
To determine whether Lerato has breached any specific fiduciary duties to Internet World
(Pty) Ltd, we must analyze her conduct in terms of the Companies Act 71 of 2008 (―the
Act‖), common law principles, and relevant case law. The primary focus will be on the
fiduciary duties imposed upon directors under the Act and common law, and whether
these obligations extend beyond a director’s formal resignation. In evaluating Lerato’s
argument that she signed the contract only after resigning, it is also necessary to consider
the broader principle of when fiduciary duties may persist beyond resignation, especially
in circumstances involving corporate opportunity.
1. Fiduciary Duties of Directors Under the Companies Act 71 of 2008
The Companies Act codifies certain common law fiduciary duties and further imposes
statutory duties on directors. Sections 75 and 76 of the Act are particularly relevant.
Section 76: Standards of Directors’ Conduct
Section 76(3) of the Act states that a director must:
Exercise their powers and perform their functions in good faith and for a proper
purpose;
Act in the best interests of the company; and
Act with the degree of care, skill and diligence that may reasonably be expected of
someone in their position.
