LML4806
Assignment 2
Semester 2 Memo |
Due September
2025
NO PLAGIARISM
[Pick the date]
[Type the company name]
, Exam (elaborations)
LML4806 Assignment 2 Semester 2 Memo | Due
September 2025
• Course
• Company Law (LML4806)
• Institution
• University Of South Africa (Unisa)
• Book
• The Law of Business Structures
LML4806 Assignment 2 Semester 2 Memo | Due September 2025. All questions fully
answered.
Question 1 Skylab (Pty) Ltd wishes to have a database designed and installed that will
receive, process and store information generated by the work done in its laboratory. It
wants to appoint a service provider to design and install this system, and also wants the
service provider to maintain the database for the next ten years. Internet World (Pty) Ltd
is keen to conclude this contract with Skylab (Pty) Ltd as it is a very profitable contract. It
appoints Lerato, one of its directors, to enter into negotiations with Skylab (Pty) Ltd for
this purpose. After a few weeks of negotiations, Skylab (Pty) Ltd decides that it does not
want to conclude the contract with Internet (Pty) Ltd but wishes to enter into the
contract with Lerato in her personal capacity. It offers the contract to Lerato personally.
Lerato subsequently resigns as a director of Internet World (Pty) Ltd and informs the 4
company that she wishes to take early retirement and travel the world before she gets
too old. Internet World (Pty) Ltd appoints Themba to continue the negotiations with
Skylab (Pty) Ltd in place of Lerato. When Themba tries to arrange a meeting with Skylab
(Pty) Ltd for this purpose, he is informed by Skylab (Pty) Ltd that it had already
concluded a contract with Lerato in her personal capacity for the design and installation
of the database, and that Lerato had recently commenced working on the database.
Internet World (Pty) Ltd wishes to pursue legal action against Lerato for a breach of her
fiduciary duties. Lerato argues that she signed the contract with Skylab (Pty) Ltd only
after she had resigned from Internet World (Pty) Ltd and that she had therefore not
breached her fiduciary duties to Internet World (Pty) Ltd. 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.
Assignment 2
Semester 2 Memo |
Due September
2025
NO PLAGIARISM
[Pick the date]
[Type the company name]
, Exam (elaborations)
LML4806 Assignment 2 Semester 2 Memo | Due
September 2025
• Course
• Company Law (LML4806)
• Institution
• University Of South Africa (Unisa)
• Book
• The Law of Business Structures
LML4806 Assignment 2 Semester 2 Memo | Due September 2025. All questions fully
answered.
Question 1 Skylab (Pty) Ltd wishes to have a database designed and installed that will
receive, process and store information generated by the work done in its laboratory. It
wants to appoint a service provider to design and install this system, and also wants the
service provider to maintain the database for the next ten years. Internet World (Pty) Ltd
is keen to conclude this contract with Skylab (Pty) Ltd as it is a very profitable contract. It
appoints Lerato, one of its directors, to enter into negotiations with Skylab (Pty) Ltd for
this purpose. After a few weeks of negotiations, Skylab (Pty) Ltd decides that it does not
want to conclude the contract with Internet (Pty) Ltd but wishes to enter into the
contract with Lerato in her personal capacity. It offers the contract to Lerato personally.
Lerato subsequently resigns as a director of Internet World (Pty) Ltd and informs the 4
company that she wishes to take early retirement and travel the world before she gets
too old. Internet World (Pty) Ltd appoints Themba to continue the negotiations with
Skylab (Pty) Ltd in place of Lerato. When Themba tries to arrange a meeting with Skylab
(Pty) Ltd for this purpose, he is informed by Skylab (Pty) Ltd that it had already
concluded a contract with Lerato in her personal capacity for the design and installation
of the database, and that Lerato had recently commenced working on the database.
Internet World (Pty) Ltd wishes to pursue legal action against Lerato for a breach of her
fiduciary duties. Lerato argues that she signed the contract with Skylab (Pty) Ltd only
after she had resigned from Internet World (Pty) Ltd and that she had therefore not
breached her fiduciary duties to Internet World (Pty) Ltd. 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.
