FBE2604
Assignment 1 Semester 2 2025
Unique Number:
Due Date: August 2025
QUESTION 1
1.1. (2 ANSWERS PROVIDED)
A partnership and a company are two very different business forms in South African law,
particularly in relation to their legal personality, formation, liability, continuity, and ownership
of assets. A company is a separate legal or juristic person that comes into existence through
incorporation in terms of the Companies Act. This means it has its own rights and duties,
can own property in its own name, and can sue or be sued without involving its shareholders
personally. Shareholders in a company are not personally liable for the debts of the
company, as they enjoy the protection of limited liability. The assets of a company belong
exclusively to the company, and shareholders have no direct proprietary rights in them.
Profits made by the company belong to the company itself and can only be distributed to
shareholders once a dividend has been declared. A change in the membership of a
company does not affect its existence, so it can continue operating indefinitely regardless of
changes in ownership.
Terms of use
By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
Assignment 1 Semester 2 2025
Unique Number:
Due Date: August 2025
QUESTION 1
1.1. (2 ANSWERS PROVIDED)
A partnership and a company are two very different business forms in South African law,
particularly in relation to their legal personality, formation, liability, continuity, and ownership
of assets. A company is a separate legal or juristic person that comes into existence through
incorporation in terms of the Companies Act. This means it has its own rights and duties,
can own property in its own name, and can sue or be sued without involving its shareholders
personally. Shareholders in a company are not personally liable for the debts of the
company, as they enjoy the protection of limited liability. The assets of a company belong
exclusively to the company, and shareholders have no direct proprietary rights in them.
Profits made by the company belong to the company itself and can only be distributed to
shareholders once a dividend has been declared. A change in the membership of a
company does not affect its existence, so it can continue operating indefinitely regardless of
changes in ownership.
Terms of use
By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
