LML4806
ASSIGNMENT 1 SEMESTER 2 2025
UNIQUE NO.
DUE DATE: 2025
, Question 1
(5 marks)
Advice to Stefan regarding shareholder participation in the AGM:
In terms of section 63(2) of the Companies Act 71 of 2008, a company must ensure
reasonable opportunity for shareholders and their proxies to attend, participate in, and
vote at shareholders’ meetings. This includes making provision for electronic
communication.
Given that many shareholders and proxies are based outside Johannesburg or
overseas, JP Textiles Ltd may make use of electronic communication facilities (such
as Zoom, Microsoft Teams, or other secure platforms) to allow remote attendance.
Section 63(2)(a) and (b) stipulates that electronic participation must allow for an
interactive, real-time exchange (i.e., communication must be contemporaneous, and
participants must be able to hear and be heard).
To enable this, JP Textiles Ltd must:
1. Give advance notice to all shareholders regarding the availability of electronic
participation.
2. Ensure that reasonable accessibility and functionality of the electronic
platform is provided.
3. Ensure the identity of participants is verified (section 63(1)) for voting
purposes.
By enabling virtual participation, JP Textiles Ltd will be complying with the Companies
Act and enhancing inclusive shareholder engagement.
ASSIGNMENT 1 SEMESTER 2 2025
UNIQUE NO.
DUE DATE: 2025
, Question 1
(5 marks)
Advice to Stefan regarding shareholder participation in the AGM:
In terms of section 63(2) of the Companies Act 71 of 2008, a company must ensure
reasonable opportunity for shareholders and their proxies to attend, participate in, and
vote at shareholders’ meetings. This includes making provision for electronic
communication.
Given that many shareholders and proxies are based outside Johannesburg or
overseas, JP Textiles Ltd may make use of electronic communication facilities (such
as Zoom, Microsoft Teams, or other secure platforms) to allow remote attendance.
Section 63(2)(a) and (b) stipulates that electronic participation must allow for an
interactive, real-time exchange (i.e., communication must be contemporaneous, and
participants must be able to hear and be heard).
To enable this, JP Textiles Ltd must:
1. Give advance notice to all shareholders regarding the availability of electronic
participation.
2. Ensure that reasonable accessibility and functionality of the electronic
platform is provided.
3. Ensure the identity of participants is verified (section 63(1)) for voting
purposes.
By enabling virtual participation, JP Textiles Ltd will be complying with the Companies
Act and enhancing inclusive shareholder engagement.
