LML4806 Semester 1 Assignment 1 - 2025
Question: 1
Strada (Pty) Ltd will be holding its first annual general meeting at its registered office. The company’s memorandum of
incorporation allows shareholders to appoint proxies to represent them at shareholders’ meetings, subject to
clause 10.3 of the Memorandum of Incorporation, which provides as follows:
“An instrument appointing a proxy must be submitted to the Transfer Secretaries or the
Chairperson of the Company not less than 48 (FORTY-EIGHT) hours before the
commencement of the Annual General Meeting or Shareholders’ Meeting at which the
proxy is to participate.”
One of the shareholders, Busi, feels strongly about some of the proposed resolutions set out in the notice of the annual
general meeting, and wants to express her views on these matters to the 4 board of directors. About two hours before the
meeting, Busi has an emergency to which she must attend, which makes it impossible for her to attend the annual general
meeting. With reference to the Companies Act 71 of 2008, case law and the facts above, advise Busi whether she can
validly appoint a proxy to exercise her right to vote and to express her views at the annual general meeting of Strada (Pty)
Ltd. Also consider in your answer whether clause 10.3 of the company’s Memorandum of Incorporation is a valid
clause. (10)
Question: 2
Big Money Ltd intends to make a primary offer to the public in order to raise funds. The directors of Big Money Ltd are
aware of certain information that could potentially discourage the public from purchasing shares in Big Money Ltd. After
deliberation, the directors of Big Money Ltd decide not to include that information in the prospectus. With reference to the
Companies Act 71 of 2008, discuss whether the directors of Big Money Ltd can be held personally liable to persons who
acquire the securities of Big Money Ltd and who may potentially suffer loss or damage as a result of the omission of that
information from the prospectus. (10)
TOTAL FOR ASSIGNMENT 1: [20]
FOR EXAMS, PORTFOLIO, AND ASSIGNMENT ASSISTANCE WHATSAPP
0727679597 EMAIL:
QUESTION 1
Question: 1
Strada (Pty) Ltd will be holding its first annual general meeting at its registered office. The company’s memorandum of
incorporation allows shareholders to appoint proxies to represent them at shareholders’ meetings, subject to
clause 10.3 of the Memorandum of Incorporation, which provides as follows:
“An instrument appointing a proxy must be submitted to the Transfer Secretaries or the
Chairperson of the Company not less than 48 (FORTY-EIGHT) hours before the
commencement of the Annual General Meeting or Shareholders’ Meeting at which the
proxy is to participate.”
One of the shareholders, Busi, feels strongly about some of the proposed resolutions set out in the notice of the annual
general meeting, and wants to express her views on these matters to the 4 board of directors. About two hours before the
meeting, Busi has an emergency to which she must attend, which makes it impossible for her to attend the annual general
meeting. With reference to the Companies Act 71 of 2008, case law and the facts above, advise Busi whether she can
validly appoint a proxy to exercise her right to vote and to express her views at the annual general meeting of Strada (Pty)
Ltd. Also consider in your answer whether clause 10.3 of the company’s Memorandum of Incorporation is a valid
clause. (10)
Question: 2
Big Money Ltd intends to make a primary offer to the public in order to raise funds. The directors of Big Money Ltd are
aware of certain information that could potentially discourage the public from purchasing shares in Big Money Ltd. After
deliberation, the directors of Big Money Ltd decide not to include that information in the prospectus. With reference to the
Companies Act 71 of 2008, discuss whether the directors of Big Money Ltd can be held personally liable to persons who
acquire the securities of Big Money Ltd and who may potentially suffer loss or damage as a result of the omission of that
information from the prospectus. (10)
TOTAL FOR ASSIGNMENT 1: [20]
FOR EXAMS, PORTFOLIO, AND ASSIGNMENT ASSISTANCE WHATSAPP
0727679597 EMAIL:
QUESTION 1
