LML4806
Assignment 2
(COMPLETE
ANSWERS) Semester
2 2024
QUESTIONS WITH COMPLETE ANSWERS
[School]
[Course title]
, LML4806 Assignment 2 (COMPLETE ANSWERS)
Semester 2 2024
Question:
1 Barbara is a business rescue practitioner of Thirsty Elephants (Pty) Ltd, a
company that is under business rescue. She convenes a meeting of the creditors of
Thirsty Elephants (Pty) Ltd to discuss and vote on the business rescue plan. The
business rescue plan contains ample provisions that protect the interests of the
secured creditors of Thirsty Elephants (Pty) Ltd. Winelands Packers (Pty) Ltd, a
secured creditor of Thirsty Elephants (Pty) Ltd holding 27% of the creditors’
voting interests that are voted at the meeting, votes against the adoption of the
business rescue plan. All the other secured and unsecured creditors in attendance at
the meeting vote for the adoption of the business rescue plan as the plan presents
certain advantages to them. Barbara is concerned that Winelands Packers (Pty)
Ltd’s vote against the adoption of the 4 business rescue plan is detrimental to the
successful rescue of Thirsty Elephants (Pty) Ltd, the interests of its employees and
the interests of the other affected creditors. With reference to the Companies Act
71 of 2008 and the relevant case law, advise Barbara on whether she may
successfully apply to a court to set aside the vote of Winelands Packers (Pty) Ltd.
In your advice, you should discuss the grounds on which such an application may
be made, the factors that the court should take into account when considering such
an application and the effect of a court setting aside Winelands Packers (Pty) Ltd’s
vote. (10)
Under the Companies Act 71 of 2008, Barbara, as the business rescue practitioner,
has the option to apply to court to set aside the vote of Winelands Packers (Pty)
Ltd. The relevant section to consider is Section 153(1)(a)(ii), which provides for an
application to court if the vote was inappropriate or unfairly prejudicial.
Grounds for Application
Barbara can make an application to court to set aside the vote on the following
grounds:
1. Inappropriate or Unfairly Prejudicial Vote:
o Barbara needs to demonstrate that the vote by Winelands Packers
(Pty) Ltd was either inappropriate or unfairly prejudicial to the
Assignment 2
(COMPLETE
ANSWERS) Semester
2 2024
QUESTIONS WITH COMPLETE ANSWERS
[School]
[Course title]
, LML4806 Assignment 2 (COMPLETE ANSWERS)
Semester 2 2024
Question:
1 Barbara is a business rescue practitioner of Thirsty Elephants (Pty) Ltd, a
company that is under business rescue. She convenes a meeting of the creditors of
Thirsty Elephants (Pty) Ltd to discuss and vote on the business rescue plan. The
business rescue plan contains ample provisions that protect the interests of the
secured creditors of Thirsty Elephants (Pty) Ltd. Winelands Packers (Pty) Ltd, a
secured creditor of Thirsty Elephants (Pty) Ltd holding 27% of the creditors’
voting interests that are voted at the meeting, votes against the adoption of the
business rescue plan. All the other secured and unsecured creditors in attendance at
the meeting vote for the adoption of the business rescue plan as the plan presents
certain advantages to them. Barbara is concerned that Winelands Packers (Pty)
Ltd’s vote against the adoption of the 4 business rescue plan is detrimental to the
successful rescue of Thirsty Elephants (Pty) Ltd, the interests of its employees and
the interests of the other affected creditors. With reference to the Companies Act
71 of 2008 and the relevant case law, advise Barbara on whether she may
successfully apply to a court to set aside the vote of Winelands Packers (Pty) Ltd.
In your advice, you should discuss the grounds on which such an application may
be made, the factors that the court should take into account when considering such
an application and the effect of a court setting aside Winelands Packers (Pty) Ltd’s
vote. (10)
Under the Companies Act 71 of 2008, Barbara, as the business rescue practitioner,
has the option to apply to court to set aside the vote of Winelands Packers (Pty)
Ltd. The relevant section to consider is Section 153(1)(a)(ii), which provides for an
application to court if the vote was inappropriate or unfairly prejudicial.
Grounds for Application
Barbara can make an application to court to set aside the vote on the following
grounds:
1. Inappropriate or Unfairly Prejudicial Vote:
o Barbara needs to demonstrate that the vote by Winelands Packers
(Pty) Ltd was either inappropriate or unfairly prejudicial to the
