LML4806 –Assignment 01 Semester 2 Solutions
Due date:
FOR EXAMS, PORTFOLIO, AND ASSIGNMENT
ASSISTANCE WHATSAPP
083 286 8465 EMAIL:
Disclaimer: This document is provided for educational purposes only and represents the
original work of the author, intended solely for learning, research, and reference. No part of
this material has been generated using AI tools, and all sources, where applicable, have been
properly acknowledged to ensure zero plagiarism. By using or submitting this document, you
agree to use it only as a guide for academic purposes, accept full responsibility for any
academic or legal consequences arising from plagiarism, misuse, or institutional violations, and
comply with your institution’s code of conduct and academic regulations. Unauthorized
copying, distribution, resale, or commercial use of this material is strictly prohibited.
, QUESTION 1
Stefan, as chairperson of the board of JP Textiles Ltd, is rightly concerned about
ensuring meaningful shareholder participation at the upcoming fifth annual general
meeting (AGM), especially given that many shareholders and proxies are based
outside Johannesburg or overseas and may find it difficult or impossible to attend the
meeting physically. The Companies Act 71 of 2008 provides a clear framework for
such situations by allowing companies to facilitate electronic participation at
shareholders’ meetings, thereby broadening accessibility and inclusivity.
Section 63(2) of the Act empowers companies to conduct meetings by electronic
communication unless expressly prohibited by the company’s Memorandum of
Incorporation (MOI).1 This means JP Textiles Ltd may hold the AGM physically at the
registered office while simultaneously allowing shareholders and proxies to
participate remotely via electronic means such as video conferencing or
teleconferencing. The electronic communication technology used must enable all
participants to communicate concurrently without intermediaries and to participate
reasonably effectively, thus ensuring that the rights to speak, vote, and engage in
debate are fully preserved.2
To comply with the Act and promote good corporate governance, JP Textiles Ltd
must notify shareholders of the availability of electronic participation in the notice of
the meeting. This notice should contain sufficient information, such as access codes
or links, deadlines for registration or confirmation, and contact details for technical
support, so shareholders and proxies can easily access the electronic platform. 3
Such measures align with modern expectations of shareholder engagement and are
increasingly standard practice in South African corporate governance.
Furthermore, the Act stipulates that shareholders bear the costs of accessing the
electronic meeting unless the company decides otherwise. 4 The board should
1
Companies Act 71 of 2008, s 63(2).
2
Companies Act 71 of 2008, s 63(2).
3
Companies Act 71 of 2008, s 63(2); Companies and Other Business Structures in South
Africa (Davis et al, 5th ed, 2021).
4
Companies Act 71 of 2008, s 63(2).
Due date:
FOR EXAMS, PORTFOLIO, AND ASSIGNMENT
ASSISTANCE WHATSAPP
083 286 8465 EMAIL:
Disclaimer: This document is provided for educational purposes only and represents the
original work of the author, intended solely for learning, research, and reference. No part of
this material has been generated using AI tools, and all sources, where applicable, have been
properly acknowledged to ensure zero plagiarism. By using or submitting this document, you
agree to use it only as a guide for academic purposes, accept full responsibility for any
academic or legal consequences arising from plagiarism, misuse, or institutional violations, and
comply with your institution’s code of conduct and academic regulations. Unauthorized
copying, distribution, resale, or commercial use of this material is strictly prohibited.
, QUESTION 1
Stefan, as chairperson of the board of JP Textiles Ltd, is rightly concerned about
ensuring meaningful shareholder participation at the upcoming fifth annual general
meeting (AGM), especially given that many shareholders and proxies are based
outside Johannesburg or overseas and may find it difficult or impossible to attend the
meeting physically. The Companies Act 71 of 2008 provides a clear framework for
such situations by allowing companies to facilitate electronic participation at
shareholders’ meetings, thereby broadening accessibility and inclusivity.
Section 63(2) of the Act empowers companies to conduct meetings by electronic
communication unless expressly prohibited by the company’s Memorandum of
Incorporation (MOI).1 This means JP Textiles Ltd may hold the AGM physically at the
registered office while simultaneously allowing shareholders and proxies to
participate remotely via electronic means such as video conferencing or
teleconferencing. The electronic communication technology used must enable all
participants to communicate concurrently without intermediaries and to participate
reasonably effectively, thus ensuring that the rights to speak, vote, and engage in
debate are fully preserved.2
To comply with the Act and promote good corporate governance, JP Textiles Ltd
must notify shareholders of the availability of electronic participation in the notice of
the meeting. This notice should contain sufficient information, such as access codes
or links, deadlines for registration or confirmation, and contact details for technical
support, so shareholders and proxies can easily access the electronic platform. 3
Such measures align with modern expectations of shareholder engagement and are
increasingly standard practice in South African corporate governance.
Furthermore, the Act stipulates that shareholders bear the costs of accessing the
electronic meeting unless the company decides otherwise. 4 The board should
1
Companies Act 71 of 2008, s 63(2).
2
Companies Act 71 of 2008, s 63(2).
3
Companies Act 71 of 2008, s 63(2); Companies and Other Business Structures in South
Africa (Davis et al, 5th ed, 2021).
4
Companies Act 71 of 2008, s 63(2).
