LML4806 ASSIGNMENT 2 SEMESTER 1
2025 (CORRECT ANSWERS) - DUE DATE
MAY 2025
www.stuvia.com
, LML4806 ASSIGNMENT 2 SEMESTER 1 2025 - DUE MAY 2025
Question: 1 Mashudu and Peter are the only directors of Star Engineering (Pty)
Ltd. Peter was appointed as an executive director of Star Engineering (Pty) Ltd two
years ago under a five-year contract of employment with the company. Mashudu is
concerned that for the past two financial years Peter has been failing to ensure the
timely preparation and submission of the company’s annual financial statements,
and that Peter omitted to sign the annual financial statements for the previous
financial year as the authorised director, as required. Mashudu approaches you for
legal advice regarding the removal of a company director. Advise Mashudu on the
following matters: 1.1 Whether there is any valid basis to remove Peter as a
director of Star Engineering (Pty) Ltd. 1.2 The procedure that must be followed
and the rights that Peter has in terms of the Companies Act 71 of 2008 should
Mashudu decide that he (Peter) must be removed as a director of Star Engineering
(Pty) Ltd. (12) Question: 2 Springbok Finance (Pty) Ltd is one of the creditors of
Falcon Airlines Ltd. The board of directors of Falcon Airlines Ltd passed a
resolution placing Falcon Airlines Ltd in voluntary business rescue and appointed
Ntando as the business rescue practitioner. Springbok Finance (Pty) Ltd believes
that Falcon Airlines Ltd can be successfully rescued. However, Springbok Finance
(Pty) Ltd is dissatisfied with the way Ntando is performing his duties as the
business rescue practitioner as he has failed to implement the approved business
rescue plan. Ntando has also not been preparing and submitting the required
monthly reports even though the business rescue proceedings have lasted longer
than three months. Springbok Finance (Pty) Ltd wants to appoint Andile, an
experienced business rescue practitioner in the airline industry, to replace Ntando
as the business rescue practitioner of Falcon Airlines Ltd. Explain whether there
are grounds to remove Ntando as the business rescue practitioner, and if so
whether Springbok Finance (Pty) Ltd may appoint Andile to replace Ntando as the
business rescue practitioner of Falcon Airlines Ltd. (5) TOTAL FOR
ASSIGNMENT 2: [20]
2025 (CORRECT ANSWERS) - DUE DATE
MAY 2025
www.stuvia.com
, LML4806 ASSIGNMENT 2 SEMESTER 1 2025 - DUE MAY 2025
Question: 1 Mashudu and Peter are the only directors of Star Engineering (Pty)
Ltd. Peter was appointed as an executive director of Star Engineering (Pty) Ltd two
years ago under a five-year contract of employment with the company. Mashudu is
concerned that for the past two financial years Peter has been failing to ensure the
timely preparation and submission of the company’s annual financial statements,
and that Peter omitted to sign the annual financial statements for the previous
financial year as the authorised director, as required. Mashudu approaches you for
legal advice regarding the removal of a company director. Advise Mashudu on the
following matters: 1.1 Whether there is any valid basis to remove Peter as a
director of Star Engineering (Pty) Ltd. 1.2 The procedure that must be followed
and the rights that Peter has in terms of the Companies Act 71 of 2008 should
Mashudu decide that he (Peter) must be removed as a director of Star Engineering
(Pty) Ltd. (12) Question: 2 Springbok Finance (Pty) Ltd is one of the creditors of
Falcon Airlines Ltd. The board of directors of Falcon Airlines Ltd passed a
resolution placing Falcon Airlines Ltd in voluntary business rescue and appointed
Ntando as the business rescue practitioner. Springbok Finance (Pty) Ltd believes
that Falcon Airlines Ltd can be successfully rescued. However, Springbok Finance
(Pty) Ltd is dissatisfied with the way Ntando is performing his duties as the
business rescue practitioner as he has failed to implement the approved business
rescue plan. Ntando has also not been preparing and submitting the required
monthly reports even though the business rescue proceedings have lasted longer
than three months. Springbok Finance (Pty) Ltd wants to appoint Andile, an
experienced business rescue practitioner in the airline industry, to replace Ntando
as the business rescue practitioner of Falcon Airlines Ltd. Explain whether there
are grounds to remove Ntando as the business rescue practitioner, and if so
whether Springbok Finance (Pty) Ltd may appoint Andile to replace Ntando as the
business rescue practitioner of Falcon Airlines Ltd. (5) TOTAL FOR
ASSIGNMENT 2: [20]
