FBE2604 Assignment 2 (COMPLETE ANSWERS) Semester 1 2025 - DUE April 2025

FBE2604 Assignment 2 (COMPLETE ANSWERS) Semester 1 2025 - DUE April 2025; 100% TRUSTED Complete, trusted solutions and explanations. For assistance, Whats-App 0.6.7-1.7.1-1.7.3.9. Ensure your success with us.. Question: 1 Pat and his two sons, Rick and Dave are discussing the legal attributes of a trust. Pat thinks that trusts have a separate legal existence. Rick is of the view that there is no distinction drawn between trust assets and private assets of the trustee even though a trustee is legally the owner of the trust assets. Dave on the other hand, holds the opinion that parties to a trust may lose more than what is held in the trust. They approach you for advice on the legal attributes of a trust. Advise them accordingly. (In your advice, define a trust, deal with each view as presented and then conclude). QUESTION 1 1.1 Briefly explian to two prospective businessmen, Thandeka and Mike, whether or not the requirements for piercing of the corporate veil in terms of the Companies Act 71 of 2008 and the Close Corporations Act 69 of 1984 are identical. Refer to case law in your answer. (5) 1.2 Frank is an IT specialist. He wishes to incorporate a company for his business. He does not want to offer any securities to the public. 1.2.1 Advise Frank on the type of company that would be the most suitable for his needs and briefly explain to him what the characteristics of such a company are. (5) 1.2.2 Frank sees an office space that will be perfect for his IT business. He wants to purchase this office space on behalf of the proposed company. Advise Frank regarding the requirements of the Companies Act 71 of 2008 that must be complied with when entering into a contract on behalf of a company that is yet to be incorporated for the contract to be binding on the company when it eventually gets incorporated. (5) 1.2.3 List the information that must be contained in a company’s Notice of Incorporation. (6) 1.2.4 Timothy is appointed as an agent for Frank’s company, Geeks Galore (Pty) Ltd, and is given an oral mandate to acquire new equipment for the company to the value of R 100 000. Timothy buys IT accessories to the value of R 30 000. Explain to Timothy whether he has actual authorty to bind the company. (6) FBE2604 1.2.5 Timothy intends to enter into a contract with Harrington (Pty) Ltd (RF). He has heard that the doctrine of constructive notice has been partly abolished by section 19(4) of the Companies Act 71 of 2008 and that there are two exceptions to this doctrine. List the two exceptions and explain to Timothy if any of the exceptions would apply to his transaction with Harrington (Pty) Ltd (RF). Pat and his two sons, Rick and Dave are discussing the legal attributes of a trust. Pat thinks that trusts have a separate legal existence. Rick is of the view that there is no distinction drawn between trust assets and private assets of the trustee even though a trustee is legally the owner of the trust assets. Dave on the other hand, holds the opinion that parties to a trust may lose more than what is held in the trust. They approach you for advice on the legal attributes of a trust. Advise them accordingly. (In your advice, define a trust, deal with each view as presented and then conclude).