LML4806 ASSIGNMENT 1 MEMO - SEMESTER 1 - 2024 - UNISA – DUE DATE: - 15 MARCH 2024 (DETAILED REFERENCES)

LML4806 ASSIGNMENT 1 MEMO - SEMESTER 1 - 2024 - UNISA – DUE DATE: - 15 MARCH 2024 (DETAILED REFERENCES) QUESTION 1 Mandla is both a director and shareholder of Cargo Logistics Ltd. He wants to buy more shares in Cargo Logistics Ltd but does not have enough money to do so. He offers to rent out a warehouse to Cargo Logistics Ltd. Cargo Logistics Ltd agrees to pay R1.2 million per annum as rent for the warehouse. Mandla then uses part of the money to purchase 10 000 shares in Cargo Logistics Ltd. With reference to the relevant case law, statutory provisions and the facts provided in the above scenario, discuss whether Cargo Logistics Ltd has provided financial assistance for the purchase of its securities. In the scenario described, the transaction involving Mandla, Cargo Logistics Ltd, and the rental of a warehouse raises questions about whether Cargo Logistics Ltd has provided financial assistance for the purchase of its securities. The issue revolves around the concept of financial assistance, particularly in the context of share acquisitions. Question 2 You are an attorney at one of the leading corporate and commercial law firms in South Africa. You are approached by Mr Skunk, the chairperson of the board of directors of ATF Ltd, for legal advice. He informs you that certain shareholders of ATF Ltd and their proxies have expressed their concerns that all the ordinary resolutions proposed to be tabled for shareholder vote at the company’s upcoming annual general meeting raise serious statutory concerns. Study the following ordinary resolutions that have been extracted from the relevant notice of annual general meeting, including the notes regarding some of the resolutions in italics, and answer the question below. With reference to the relevant statutory provisions, the facts and the information provided in the extract from the notice of the annual general meeting above, advise Mr Skunk on whether the claim that all the proposed ordinary resolutions raise serious statutory concerns has any merit. (You should deal with each ordinary resolution separately in your answer).