MRL2601 Assignment 2
(COMPLETE ANSWERS) Semester
1 2025 - DUE April 2025
, MRL2601 Assignment 2
(COMPLETE ANSWERS) Semester
1 2025 - DUE April 2025
QUESTION 1 1.1 Name the different types of
companies that are provided for in the
Companies Act 71 of 2008. (5) 1.2 Vela is a
shareholder of Impala Ltd. The next annual
general meeting will be held on 13 November
2023. Unfortunately, at the time he will be
overseas on a business trip. Vela would, however,
still like to vote on some matters that will be
discussed at the meeting. Advise him regarding
the possibility of appointing a proxy to attend
and vote on his behalf at the annual general
meeting. Also indicate the validity requirements
for appointment of a proxy. (5) TOTAL: [10 marks]
1.1 Types of Companies in Terms of the Companies Act 71 of 2008 (5 marks)
The Companies Act 71 of 2008 provides for the following types of companies:
1. Private Company (Pty) Ltd:
o Restricted transfer of shares, limited to 50 shareholders, and cannot offer
shares to the public.
2. Public Company (Ltd):
o Can offer shares to the public and is listed on a stock exchange.
3. Non-Profit Company (NPC):
o Established for a public benefit purpose, without the objective of profit
distribution.
4. Personal Liability Company (Inc):
o Typically used by professional associations (e.g., attorneys, accountants)
where directors have personal liability.
5. State-Owned Company (SOC Ltd):
o Owned by the government and operates for public benefit (e.g., Eskom,
Transnet).
✅ Conclusion: The Companies Act recognizes five main types of companies, each serving
different purposes and having distinct characteristics.
(COMPLETE ANSWERS) Semester
1 2025 - DUE April 2025
, MRL2601 Assignment 2
(COMPLETE ANSWERS) Semester
1 2025 - DUE April 2025
QUESTION 1 1.1 Name the different types of
companies that are provided for in the
Companies Act 71 of 2008. (5) 1.2 Vela is a
shareholder of Impala Ltd. The next annual
general meeting will be held on 13 November
2023. Unfortunately, at the time he will be
overseas on a business trip. Vela would, however,
still like to vote on some matters that will be
discussed at the meeting. Advise him regarding
the possibility of appointing a proxy to attend
and vote on his behalf at the annual general
meeting. Also indicate the validity requirements
for appointment of a proxy. (5) TOTAL: [10 marks]
1.1 Types of Companies in Terms of the Companies Act 71 of 2008 (5 marks)
The Companies Act 71 of 2008 provides for the following types of companies:
1. Private Company (Pty) Ltd:
o Restricted transfer of shares, limited to 50 shareholders, and cannot offer
shares to the public.
2. Public Company (Ltd):
o Can offer shares to the public and is listed on a stock exchange.
3. Non-Profit Company (NPC):
o Established for a public benefit purpose, without the objective of profit
distribution.
4. Personal Liability Company (Inc):
o Typically used by professional associations (e.g., attorneys, accountants)
where directors have personal liability.
5. State-Owned Company (SOC Ltd):
o Owned by the government and operates for public benefit (e.g., Eskom,
Transnet).
✅ Conclusion: The Companies Act recognizes five main types of companies, each serving
different purposes and having distinct characteristics.
