AUE1601
Assignment 2 Semester 1 & 2 2021
Unique #: 648878
• .
PART 1
QUESTION 1
1.1.
a) Describe circumstances that, according to the Companies Act, will render a
person ineligible or disqualified from being appointed as a director.
Reference: Learning unit 4.1 and Companies Act, section 69
In accordance with section 69 of the Companies Act, the following persons are
ineligible to be appointed as a director of a company:
i. A juristic person
ii. An unemancipated minor, or someone who is under a similar legal disability
iii. or who does not satisfy any qualification set out in the company’s memorandum of
incorporation
Furthermore, the following individuals are disqualified to be appointed as a director of a
company:
i. If a court has prohibited the person or declared the person delinquent in terms of
section 162
ii. An unrehabilitated insolvent
iii. is prohibited in terms of any public regulation
iv. has been removed from an office of trust on the grounds of misconduct involving
dishonesty
v. has been convicted and imprisoned without the option of a fine, or fined more than
the prescribed amount for theft, forgery, perjury or an offence.
b) Discuss with reasons, whether or not Mr Motholo’s appointment as the
procurement director is valid.
Yes it is valid. Mr Motholo’s is qualified to be appointed as a director as nothing in the
information provided disqualifies him from been appointed a director.
Assignment 2 Semester 1 & 2 2021
Unique #: 648878
• .
PART 1
QUESTION 1
1.1.
a) Describe circumstances that, according to the Companies Act, will render a
person ineligible or disqualified from being appointed as a director.
Reference: Learning unit 4.1 and Companies Act, section 69
In accordance with section 69 of the Companies Act, the following persons are
ineligible to be appointed as a director of a company:
i. A juristic person
ii. An unemancipated minor, or someone who is under a similar legal disability
iii. or who does not satisfy any qualification set out in the company’s memorandum of
incorporation
Furthermore, the following individuals are disqualified to be appointed as a director of a
company:
i. If a court has prohibited the person or declared the person delinquent in terms of
section 162
ii. An unrehabilitated insolvent
iii. is prohibited in terms of any public regulation
iv. has been removed from an office of trust on the grounds of misconduct involving
dishonesty
v. has been convicted and imprisoned without the option of a fine, or fined more than
the prescribed amount for theft, forgery, perjury or an offence.
b) Discuss with reasons, whether or not Mr Motholo’s appointment as the
procurement director is valid.
Yes it is valid. Mr Motholo’s is qualified to be appointed as a director as nothing in the
information provided disqualifies him from been appointed a director.
