AUE1601 EXAM PACK 2025 {DETAILED QUESTIONS AND ANSWERS }

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Question 1
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NTL (Pty) Ltd entered into a contract with Protech (Pty) Ltd
for the purchase of five (5) radar systems valued at R1.1
million each. Peter McGregor is a director of NTL (Pty) Ltd,
and his brother Melvin is the majority shareholder of Protech
(Pty) Ltd.Choose the alternative that CORRECTLY describes
the procedures to be followed in terms of the Companies Act.
a.
Peter McGregor, if present at the meeting, must leave the
meeting immediately after disclosing the interest; he will not
be regarded as being present at the meeting for the purposes
of determining whether sufÏcient directors are present to
constitute a meeting and for the purpose of determining
whether a resolution has sufÏcient support to be adopted. b.
Peter McGregor must disclose the interest and its general
nature within a reasonable time after the meeting where the
matter is considered; disclose any material information
relating to the matter known to him; and disclose any
observations or pertinent insights relating to the matter if
requested to do so by other directors.
c.
Peter McGregor, if present at the meeting, must leave the
meeting immediately after disclosing the interest; he will be


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regarded as being present at the meeting for the purposes of
determining whether sufÏcient directors are present to
constitute a meeting and for the purpose of determining
whether a resolution has sufÏcient support to be adopted. d.
Peter McGregor must disclose the interest and its general
nature before the matter is considered at the meeting; disclose
any material information relating to the matter known to him
and disclose any observations or pertinent insights relating to
the matter if requested to do so by other directors.
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The correct answer is: Peter McGregor must disclose the
interest and its general nature before the matter is considered
at the meeting; disclose any material information relating to
the matter known to him and disclose any observations or
pertinent insights relating to the matter if requested to do so
by other directors.
Question 2
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Mark 2.00 out of 2.00

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Which one of the following statements regarding the
memorandum of incorporation (MOI) is TRUE in terms of the
Companies Act?
a.




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Once a company’s memorandum of incorporation (MOI) has
been lodged with the CIPC it may not be altered.
b.
Shares with par value may only be authorised and issued
in a newly incorporated company, if allowed by the
memorandum of incorporation (MOI). c.
The board may, unless prohibited by the memorandum of
incorporation (MOI), make changes to the number of
authorised shares of a company.
d.
A company’s memorandum of incorporation (MOI) may not
permit a lower percentage of voting rights to approve any
special resolutions.
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The correct answer is: The board may, unless prohibited by
the memorandum of incorporation (MOI), make changes to
the number of authorised shares of a company.
Question 3
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Which one of the following statements is TRUE relating to
personal liability companies in terms of the Companies Act?




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