,LML4806 Assignment 2 (COMPLETE ANSWERS)
Semester 2 2025 - DUE September 2025; 100%
TRUSTED Complete, trusted solutions and
explanations.
The board of directors of Zentech Solutions Ltd received two
takeover bids, one from a majority shareholder of the company,
Imali Ltd, and the other from Ndugu Holdings Ltd. The board of
Zentech Solutions Ltd believes in good faith that the takeover
bid from Ndugu Holdings Ltd, which is slightly higher, is in the
company’s best interests. It issues further shares of the
company to Ndugu Holdings Ltd in order to dilute the majority
shareholding of Imali Ltd and to ensure that the takeover bid
made by Ndugu Holdings Ltd would be successful. Imali Ltd
wishes to challenge the issue of the additional shares to Ndugu
Holdings Ltd by the board of Zentech Solutions Ltd on the basis
that the board breached its fiduciary duty to act for a proper
purpose in issuing these shares. The board of Zentech Solutions
Ltd is of the view that it was acting in the company’s best
interests in issuing the additional shares, especially since none
of the directors obtained any personal advantage for
themselves. With reference to the Companies Act 71 of 2008
and relevant case law, advise Imali Ltd of its prospects of
success in having the issue of the shares to Ndugu Holdings Ltd
set aside by a court on the basis that the directors of Imali Ltd
breached their fiduciary duty to act for a proper purpose.
, 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) Boaz is a
business rescue practitioner of a company that is under
business rescue. Due to complications in the company, Boaz
applied to court to extend the duration of the business rescue
proceedings for two additional months. The additional two
months have lapsed and the business rescue proceedings have
not ended. Boaz wants the business rescue proceedings to
Semester 2 2025 - DUE September 2025; 100%
TRUSTED Complete, trusted solutions and
explanations.
The board of directors of Zentech Solutions Ltd received two
takeover bids, one from a majority shareholder of the company,
Imali Ltd, and the other from Ndugu Holdings Ltd. The board of
Zentech Solutions Ltd believes in good faith that the takeover
bid from Ndugu Holdings Ltd, which is slightly higher, is in the
company’s best interests. It issues further shares of the
company to Ndugu Holdings Ltd in order to dilute the majority
shareholding of Imali Ltd and to ensure that the takeover bid
made by Ndugu Holdings Ltd would be successful. Imali Ltd
wishes to challenge the issue of the additional shares to Ndugu
Holdings Ltd by the board of Zentech Solutions Ltd on the basis
that the board breached its fiduciary duty to act for a proper
purpose in issuing these shares. The board of Zentech Solutions
Ltd is of the view that it was acting in the company’s best
interests in issuing the additional shares, especially since none
of the directors obtained any personal advantage for
themselves. With reference to the Companies Act 71 of 2008
and relevant case law, advise Imali Ltd of its prospects of
success in having the issue of the shares to Ndugu Holdings Ltd
set aside by a court on the basis that the directors of Imali Ltd
breached their fiduciary duty to act for a proper purpose.
, 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) Boaz is a
business rescue practitioner of a company that is under
business rescue. Due to complications in the company, Boaz
applied to court to extend the duration of the business rescue
proceedings for two additional months. The additional two
months have lapsed and the business rescue proceedings have
not ended. Boaz wants the business rescue proceedings to
