LML4806 ASSIGNMENT 1 SEMESTER 1 2023

1 GENERAL INSTRUCTIONS • Assignments test your understanding of the learning material and your ability to apply what you have learnt. Two written assignments are set for this module i.e., Assignment 01 and Assignment 02. Answering these questions gives you practice in answering the type of questions that you may expect in the examination. • The marks you obtain for Assignment 01 and Assignment 02 make up your year mark. • You should answer all questions under each assignment. Your answer to each assignment should generally not exceed two and a half pages if it is typed (excluding the bibliography). • You may reference your sources as you wish (e.g., in-text or in the footnotes) but it is preferable that you reference your sources within the text of your answers. It is not mandatory to include a bibliography. You may include a bibliography at the end of your assignment voluntarily. However, you should remember to include your Honesty Declaration Form. • Refer to Paragraph 9 of your Tutorial Letter 101 for the general information about assessment. • Also refer to Paragraph 10 of your Tutorial Letter 101 for important information regarding academic dishonesty (plagiarism and cheating). 2 ASSIGNMENT 01 Question: 1 Musa, Amos, Sipho and Jimmy are directors of Khubo Limited. Jimmy was appointed as an executive director of Khubo Limited three years ago under a five-year contract of employment with the company. Musa has expressed his concerns to the board of directors that for the past two financial years Jimmy has been failing to ensure the timely preparation and submission of the company’s annual financial statements, and that Jimmy omitted to sign the annual financial statements for the previous financial year as the authorised director, as required. Musa has also informed the board of directors that, after joining Khubo Limited, Jimmy was removed as chairperson of the board of trustees of the JF Pension Fund after he forged some documents and withdrew R2 million from the JF Pension Fund’s bank account for his personal use. Advise Jimmy on the following: 1.1 Whether under the circumstances of this case the board of directors of Khubo Limited will have valid grounds to remove him (Jimmy) as a director of the company. (6) 1.2 The procedure that the board of directors must follow and the rights that Jimmy has in terms of the Companies Act 71 of 2008 should the board of directors decide to remove him as a director. (8) Question: 2 TN Engineering Group Ltd (“the company”), a newly incorporated company does not have a company secretary. The company has been approached by RLV Corporate Services (Pty) Ltd which has offered to provide it with company secretarial services. In its Memorandum of Incorporation, RLV Corporate Services (Pty) Ltd describes itself as a South African business that provides customised compliance, governance and company secretarial services to the South African corporate community. 4 With reference to the Companies Act 71 of 2008, discuss whether RLV Corporate Services (Pty) Ltd can validly be appointed as the company secretary of TN Engineering Group Ltd. (6)