, AUI4862 Assignment 2 (COMPLETE ANSWERS)
Semester 1 2025 - DUE 2025; 100% correct solutions
and explanations.
QUESTION 1
Part A: Compliance with the Companies Act 71 of 2008
The facts present a scenario involving a potential conflict of
interest in terms of section 75 of the Companies Act 71 of
2008 (the "Act"). Below is an analysis of the applicable legal
principles:
1. Disclosure of Personal Financial Interest (Section 75)
According to section 75(1) of the Act, a director must
disclose any personal financial interest in a matter to be
considered at a board meeting.
The term “personal financial interest” is broadly defined in
section 1 of the Act and includes an interest held by a
related person.
A “related person” includes a brother of the director (in
this case, Oscar, who is Thabo's brother and also the
majority shareholder of Iceland (Pty) Ltd).
2. Disclosure Obligation
Thabo was required to:
o Disclose the nature and extent of his interest in the
contract (via Oscar) before the matter was considered.
Semester 1 2025 - DUE 2025; 100% correct solutions
and explanations.
QUESTION 1
Part A: Compliance with the Companies Act 71 of 2008
The facts present a scenario involving a potential conflict of
interest in terms of section 75 of the Companies Act 71 of
2008 (the "Act"). Below is an analysis of the applicable legal
principles:
1. Disclosure of Personal Financial Interest (Section 75)
According to section 75(1) of the Act, a director must
disclose any personal financial interest in a matter to be
considered at a board meeting.
The term “personal financial interest” is broadly defined in
section 1 of the Act and includes an interest held by a
related person.
A “related person” includes a brother of the director (in
this case, Oscar, who is Thabo's brother and also the
majority shareholder of Iceland (Pty) Ltd).
2. Disclosure Obligation
Thabo was required to:
o Disclose the nature and extent of his interest in the
contract (via Oscar) before the matter was considered.
