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LML4806 ASSIGNMENT 1 MEMO - SEMESTER 2 - 2025 UNISA – DUE DATE: - 22 AUGUST 2025 (DETAILED ANSWERS WITH FOOTNOTES AND A BIBLIOGRAPHY - DISTINCTION GUARANTEED!)

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LML4806 ASSIGNMENT 1 MEMO - SEMESTER 2 - 2025 UNISA – DUE DATE: - 22 AUGUST 2025 (DETAILED ANSWERS WITH FOOTNOTES AND A BIBLIOGRAPHY - DISTINCTION GUARANTEED!) Question 1 You are approached by Stefan, the chairperson of the board of directors of JP Textiles Ltd, for legal advice. He informs you that JP Textiles Ltd will be holding its fifth annual general meeting (AGM) next month at its registered office in Johannesburg. He further explains that the board of directors is concerned that a significant number of the company’s shareholders and shareholder proxies, who are based outside Johannesburg and overseas, will not be able to travel to Johannesburg to attend the AGM in person at the company’s registered office. Advise Stefan on what the company could do to ensure that it provides a reasonable opportunity for all shareholders and shareholder proxies to attend and participate at its fifth AGM. [5 marks] Question 2 Background facts: • SA Renewables Ltd holds 40% of the ordinary shares in Green Energy Ltd and 100% of the ordinary shares in New Technologies Ltd. • New Technologies Ltd holds 25% of the ordinary shares in Green Energy Ltd. • Green Energy Ltd wants to issue shares to raise cash. • Investment Solutions (Pty) Ltd wishes to purchase the new shares, but it does not have the funds and requires a loan to do so. A transaction is being negotiated between the directors of SA Renewables Ltd, Green Energy Ltd and Investment Solutions (Pty) Ltd in terms of which: 1. Investment Solutions (Pty) Ltd will purchase 10% of the shares to be issued by Green Energy Ltd; 2. The consideration for the shares will be paid for by a loan of R250 million obtained from Capital Bank Ltd; 3. SA Renewables Ltd will assure Capital Bank Ltd that Investment Solutions (Pty) Ltd will repay the loan; and 4. SA Renewables Ltd will undertake to Capital Bank Ltd that, should Investment Solutions (Pty) Ltd fail to repay the loan, SA Renewables Ltd will step into its shoes and repay the loan directly to Capital Bank Ltd. 2.1 Explain whether SA Renewables Ltd and Green Energy Ltd are related companies. [5 marks] 2.2 Discuss the formalities and procedures that must be complied with before the board of directors may authorise the conclusion of an agreement in terms of which SA Renewables Ltd will assume the obligation to repay the loan in question to Capital Bank Ltd if Investment Solutions (Pty) Ltd fails to do so. Also explain the implications if SA Renewables Ltd concludes the agreement contrary to the required formalities and procedures. [10 marks] TOTAL FOR ASSIGNMENT 01: [20 marks]

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LML4806
Company law



ASSIGNMENT 1
MEMO + FREE EXAMPACK/
NOTES BOOKLET
SEMESTER 2 – 2025 - UNISA
UNIQUE NUMBER: - 604723
DUE DATE: - 22 AUGUST 2025
Footnotes/Bibliography included


ASSIGNMENT PREVIEW
Question 1

You are approached by Stefan, the chairperson of the board of directors of JP Textiles Ltd, for legal
advice. He informs you that JP Textiles Ltd will be holding its fifth annual general meeting (AGM) next
month at its registered office in Johannesburg.

He further explains that the board of directors is concerned that a significant number of the company’s
shareholders and shareholder proxies, who are based outside Johannesburg and overseas, will not be
able to travel to Johannesburg to attend the AGM in person at the company’s registered office.
Disclaimer
Extreme care has been used by our Tutors to draft this document, however the contents are provided “as is” without any representations or
warranties, express or implied. This document is to be used for comparison, research and reference purposes ONLY. No part of this document
may be reproduced, resold or transmitted in any form or by any means without prior written permission from the Author. – LLB EXAMPACKS
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, Question 1

You are approached by Stefan, the chairperson of the board of directors of JP Textiles
Ltd, for legal advice. He informs you that JP Textiles Ltd will be holding its fifth annual
general meeting (AGM) next month at its registered office in Johannesburg.

He further explains that the board of directors is concerned that a significant number of
the company’s shareholders and shareholder proxies, who are based outside
Johannesburg and overseas, will not be able to travel to Johannesburg to attend the AGM
in person at the company’s registered office.

Advise Stefan on what the company could do to ensure that it provides a reasonable
opportunity for all shareholders and shareholder proxies to attend and participate at
its fifth AGM.

[5 marks]




Question 2

Background facts:

• SA Renewables Ltd holds 40% of the ordinary shares in Green Energy Ltd and
100% of the ordinary shares in New Technologies Ltd.
• New Technologies Ltd holds 25% of the ordinary shares in Green Energy Ltd.
• Green Energy Ltd wants to issue shares to raise cash.
• Investment Solutions (Pty) Ltd wishes to purchase the new shares, but it does
not have the funds and requires a loan to do so.

A transaction is being negotiated between the directors of SA Renewables Ltd, Green
Energy Ltd and Investment Solutions (Pty) Ltd in terms of which:

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