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RRLLB81 Assignment 2 (RESEARCH COMPLETE ANSWERS) Semester 2 2026 - DUE 10 September 2026 - Directors’ Duties, Creditor Protection and the Best Interests of the Company

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RRLLB81 Assignment 2 (RESEARCH COMPLETE ANSWERS) Semester 2 2026 - DUE 10 September 2026 - Directors’ Duties, Creditor Protection and the Best Interests of the Company; 100% TRUSTED Complete, trusted solutions and explanations. For assistance, Whats-App 0.8.1..2.7.8..3.3.7.2... TOPIC ONE: Directors’ Duties, Creditor Protection and the Best Interests of the Company Background Ubuntu Holdings (Pty) Ltd is a large manufacturing company operating throughout Southern Africa. The company has experienced financial difficulties over the past three years due to declining profits, increasing debt obligations and unsuccessful expansion projects. Despite these challenges, the board of directors, led by its executive chairperson, Mr Mpho Ndlovu, continued to approve substantial dividend payments to shareholders and entered into several high-risk commercial transactions. At the time these decisions were taken, the company remained solvent on paper and was still able to pay most of its debts as they fell due. However, internal reports presented to the board revealed growing contingent liabilities, deteriorating cash-flow projections and a real possibility that the company could become insolvent in the foreseeable future. Several major creditors expressed concern that the company’s directors were prioritising shareholder returns while disregarding the interests of creditors. Two years later, Ubuntu Holdings entered business rescue proceedings after failing to meet its financial obligations. Creditors alleged that the directors had failed to take reasonable steps to protect their interests during the period in which the company was experiencing 54 financial distress. The directors, however, argue that their primary duty was always to act in the best interests of the company and its shareholders. This dispute has reignited debate regarding the nature and extent of directors’ duties towards creditors, particularly where a company is approaching insolvency but has not yet become insolvent. Conduct research and critically investigate the relationship between directors’ fiduciary duties, shareholder interests and creditor protection in company law. In your discussion, analyse the extent to which directors may be required to consider creditor interests while conducting the affairs of a company. Cases Venator Africa (Pty) Ltd v Watts 2024 (4) SA 539 (SCA) Ozinsky NO v Lloyd 1995 (2) SA 915 (AD) Books Cassim FHI (ed), Contemporary Company Law (3rd edn, Juta 2022) Beuthin RC and Luiz SM, Basic Company Law (3rd edn, LexisNexis 2012) Legislation Companies Act 71 of 2008 Companies Regulations, 2011 Journal Articles Sibanda M, Lesenyeho NK and Nwafor AO, ‘A Comparative Exploration of Directors’ Duty to Creditors in Company Operations’ (2026) African Journal of Law and Justice System 7 Stevens R, ‘The Legal Nature of the Duty of Care and Skill: Contract or Delict? (2017) 20 PER 16

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RRLLB81
Assignment 2 Semester 2 2026
Unique number:
Due date: 10 September 2026


DIRECTORS’ DUTIES AND CREDITOR PROTECTION IN THE ZONE
OF FINANCIAL DISTRESS


by

[FULL NAMES AND SURNAME OF STUDENT]

[STUDENT NUMBER]


Submitted in partial fulfilment of the requirements for the degree

BACHELOR OF LAWS

in the

,DIRECTORS’ DUTIES AND CREDITOR PROTECTION IN THE ZONE
OF FINANCIAL DISTRESS


by

[FULL NAMES AND SURNAME OF STUDENT]

[STUDENT NUMBER]


Submitted in partial fulfilment of the requirements for the degree

BACHELOR OF LAWS

in the

DEPARTMENT OF CRIMINAL AND PROCEDURAL LAW

SCHOOL OF LAW

UNIVERSITY OF SOUTH AFRICA




SUPERVISOR: PROF MM MONYAKANE

RRLLB81 ASSESSMENT 2 / FINAL PORTFOLIO

DUE DATE: ____________________

, ACADEMIC HONESTY DECLARATION

1. I understand what academic dishonesty entails and am aware of Unisa’s policies
in this regard.

2. I declare that this assignment is my own, original work. Where I have used
someone else’s work, I have indicated this by using the prescribed style of
referencing. Every contribution to, and quotation in, this assignment from the work or
works of other people has been referenced according to the prescribed style.

3. I have not allowed, and will not allow, anyone to copy my work with the intention of
passing it off as his or her own work.

4. I did not make use of another student’s work and submit it as my own.

5. I declare that I am aware of and accept the requirement that my work must be
submitted successfully through Turnitin for it to qualify to be marked. I accept that a
mark of 0% may be awarded if there is no Turnitin report for my submission.

6. I confirm that I am aware that Assessment 2 and Assessment 3 must be submitted
in a searchable PDF file format and that it must not be scanned as this will disable
Turnitin. I accept that a mark of 0% may be awarded for failure to submit either of
these assessments in the correct file format if it results in Turnitin not being able to
generate a similarity report.

FULL NAMES: ........................................................................................................

STUDENT NUMBER: .................................................................................................

MODULE CODE: RRLLB81

DATE: .....................................................................................................................

TOPIC SELECTED: Directors’ Duties, Creditor Protection and the Best Interests of
the Company

MARK RECEIVED FOR ASSESSMENT 1: .......%

MARK RECEIVED FOR ASSESSMENT 2: .......%

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Publisher: 1992 ISBN: 9780702127540 Edition: Unknown

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