MRL2601
EXAM
OCTOBER
2024
QUESTION 1
, 1.1 The accounting officer is the person responsible for drawing up the
financial statements in a close corporation.
1.2 A(n) share is one of the units into which the proprietary interest in a
profit company is divided.
1.3 A(n) proxy is the person who is appointed to represent a shareholder
at a meeting.
1.4 The record date is the date on which a company determines the
identity of its shareholders and their shareholding for purposes of
establishing who is entitled to shareholder rights.
1.5 The company secretary is the principal administrative officer of a
company.
QUESTION 2
2.11
Veritaste (Pty) Ltd is a private company.
The distinctive characteristics of a private company in South Africa under
the Companies Act 71 of 2008 include:
The name of the company must end with "(Pty) Ltd."
It is limited to a maximum of 50 shareholders.
Shares cannot be offered to the public, and there are restrictions on
transferring shares.
A private company is not required to have a minimum number of
directors beyond the one director usually necessary for its
establishment.
Generally, private companies have fewer reporting and regulatory
requirements than public companies.
2.1.2
According to the Companies Act 71 of 2008, the approval of dividends
typically requires shareholder authorization if specified in the company's
Memorandum of Incorporation (MOI). Since Veritaste (Pty) Ltd’s MOI
mandates shareholder approval for dividends, Beauty and Phineas would
generally need to convene a shareholders' meeting to obtain this
approval.
However, the Companies Act allows for certain decisions to be made by
written resolution without convening a meeting, provided all shareholders
entitled to vote agree to it in writing (section 60 of the Act). In this
scenario:
1. Preference shareholder rights: Bongiwe, as a preference
shareholder without voting rights, would not need to consent to the
written resolution if it were used, as she does not hold voting rights
on this matter.
EXAM
OCTOBER
2024
QUESTION 1
, 1.1 The accounting officer is the person responsible for drawing up the
financial statements in a close corporation.
1.2 A(n) share is one of the units into which the proprietary interest in a
profit company is divided.
1.3 A(n) proxy is the person who is appointed to represent a shareholder
at a meeting.
1.4 The record date is the date on which a company determines the
identity of its shareholders and their shareholding for purposes of
establishing who is entitled to shareholder rights.
1.5 The company secretary is the principal administrative officer of a
company.
QUESTION 2
2.11
Veritaste (Pty) Ltd is a private company.
The distinctive characteristics of a private company in South Africa under
the Companies Act 71 of 2008 include:
The name of the company must end with "(Pty) Ltd."
It is limited to a maximum of 50 shareholders.
Shares cannot be offered to the public, and there are restrictions on
transferring shares.
A private company is not required to have a minimum number of
directors beyond the one director usually necessary for its
establishment.
Generally, private companies have fewer reporting and regulatory
requirements than public companies.
2.1.2
According to the Companies Act 71 of 2008, the approval of dividends
typically requires shareholder authorization if specified in the company's
Memorandum of Incorporation (MOI). Since Veritaste (Pty) Ltd’s MOI
mandates shareholder approval for dividends, Beauty and Phineas would
generally need to convene a shareholders' meeting to obtain this
approval.
However, the Companies Act allows for certain decisions to be made by
written resolution without convening a meeting, provided all shareholders
entitled to vote agree to it in writing (section 60 of the Act). In this
scenario:
1. Preference shareholder rights: Bongiwe, as a preference
shareholder without voting rights, would not need to consent to the
written resolution if it were used, as she does not hold voting rights
on this matter.
