MCL5903
Assignment 2
Semester 2
Memo | Due 5
September 2025
NO PLAGIARISM
[Pick the date]
[Type the company name]
, Exam (elaborations)
MCL5903 Assignment 2 Semester 2 Memo |
Due 5 September 2025
Course
Insolvency Law (MCL5903)
Institution
University Of South Africa (Unisa)
Book
Contemporary Company Law
The Companies and Intellectual Property Commission (‘the Commission’)
removes the name of Sand-Ton Computer Systems (Pty) Ltd (‘Sand-Ton’)
from the registry of companies. According to the Commission, Sand-Ton has
failed to file its annual financial returns for two consecutive years, as it is
required in terms of section 33 of the Companies Act 71 of 2008 (‘the
Companies Act’). Following the removal of its name from the registry, Sand-
Ton receives a government contract from the Department of Education (‘the
Department’), to supply computers for the rural schools based in KwaZulu-
Natal. While executing on its contract, Sand-Ton is reinstated to the register
administered by the Commission. Upon completion of its task in terms of the
agreement, the Department declines to pay for its obligations to Sand-Ton.
The reason offered by the Department is that Sand-Ton was never a
corporate entity at the time of the conclusion of the contract, which
according to the Department, renders the contract invalid. With reference to
the relevant provisions of the Companies Act 71 of 2008, prescribed case law
and prescribed journal article; provide a critical discussion of the status of
the contract entered into between Sand-Ton and the Department. In your
discussion, consider whether the Companies Act has adequately addressed
the status of contracts (or proceedings) entered into while the company was
deregistered.
The contract between Sand-Ton Computer Systems (Pty) Ltd and the Department of Education is
valid despite Sand-Ton's deregistration at the time of its conclusion. The Companies Act 71 of
2008 has addressed this issue through a process of reinstatement, which retrospectively validates
the company's actions during the period of deregistration.
The Status of the Contract
According to section 82(4) of the Companies Act, when a company is deregistered, its legal
personality is terminated, and all of its assets become the property of the state (known as bona
Assignment 2
Semester 2
Memo | Due 5
September 2025
NO PLAGIARISM
[Pick the date]
[Type the company name]
, Exam (elaborations)
MCL5903 Assignment 2 Semester 2 Memo |
Due 5 September 2025
Course
Insolvency Law (MCL5903)
Institution
University Of South Africa (Unisa)
Book
Contemporary Company Law
The Companies and Intellectual Property Commission (‘the Commission’)
removes the name of Sand-Ton Computer Systems (Pty) Ltd (‘Sand-Ton’)
from the registry of companies. According to the Commission, Sand-Ton has
failed to file its annual financial returns for two consecutive years, as it is
required in terms of section 33 of the Companies Act 71 of 2008 (‘the
Companies Act’). Following the removal of its name from the registry, Sand-
Ton receives a government contract from the Department of Education (‘the
Department’), to supply computers for the rural schools based in KwaZulu-
Natal. While executing on its contract, Sand-Ton is reinstated to the register
administered by the Commission. Upon completion of its task in terms of the
agreement, the Department declines to pay for its obligations to Sand-Ton.
The reason offered by the Department is that Sand-Ton was never a
corporate entity at the time of the conclusion of the contract, which
according to the Department, renders the contract invalid. With reference to
the relevant provisions of the Companies Act 71 of 2008, prescribed case law
and prescribed journal article; provide a critical discussion of the status of
the contract entered into between Sand-Ton and the Department. In your
discussion, consider whether the Companies Act has adequately addressed
the status of contracts (or proceedings) entered into while the company was
deregistered.
The contract between Sand-Ton Computer Systems (Pty) Ltd and the Department of Education is
valid despite Sand-Ton's deregistration at the time of its conclusion. The Companies Act 71 of
2008 has addressed this issue through a process of reinstatement, which retrospectively validates
the company's actions during the period of deregistration.
The Status of the Contract
According to section 82(4) of the Companies Act, when a company is deregistered, its legal
personality is terminated, and all of its assets become the property of the state (known as bona
