MRL2601
ASSIGNMENT 2
SEMESTER - 1
DUE DATE:
2025
"Elevate Your Excellence: Where Distinction Meets Assurance in Every Assignment!"
,MRL2601 ASSIGNMENT 2
SEMESTER 1 – 2025
DUE DATE: 2025
1
, QUESTION 1.
Cool Coals (Pty) Ltd operates within a poor community and made three times the usual profit
at the end of 2024. The board of directors of Cool Coals (Pty) Ltd debates whether the
company should issue university bursaries to learners who have completed grade 12 in 2024
in the community. Some of the directors are opposed to this view. They claim that the
company should be managed exclusively in the interests of the shareholders with the result
that: (a) the interests of other stakeholders such as the community and its grade 12 learners
cannot be taken into account; and (b) all the profits of the company must be distributed to
the shareholders of Cool Coals (Pty) Ltd. As the company secretary, the board of the company
approaches you for advice.
With reference to the principle of Ubuntu as expressed by Madala J in the case of S v
Makwanyane 1995 (6) BCLR 665 (CC) and the facts in the scenario above, advise the board of
Cool Coals (Pty) Ltd on whether the payment of university bursaries may be justified on the
basis of the principle of Ubuntu, or whether the profits of the company should be distributed
exclusively to its shareholders. (5)
Ubuntu refers to the saying umuntu ngumuntu ngabantu, which means a person is a person
through others. In the case of S v Makwanyane 1995 (6) BCLR 665 (CC), Madala J expressed the
view that ubuntu advocates social justice and fairness.
ANSWER CONTINUED ON THE NEXT PAGE:
2
ASSIGNMENT 2
SEMESTER - 1
DUE DATE:
2025
"Elevate Your Excellence: Where Distinction Meets Assurance in Every Assignment!"
,MRL2601 ASSIGNMENT 2
SEMESTER 1 – 2025
DUE DATE: 2025
1
, QUESTION 1.
Cool Coals (Pty) Ltd operates within a poor community and made three times the usual profit
at the end of 2024. The board of directors of Cool Coals (Pty) Ltd debates whether the
company should issue university bursaries to learners who have completed grade 12 in 2024
in the community. Some of the directors are opposed to this view. They claim that the
company should be managed exclusively in the interests of the shareholders with the result
that: (a) the interests of other stakeholders such as the community and its grade 12 learners
cannot be taken into account; and (b) all the profits of the company must be distributed to
the shareholders of Cool Coals (Pty) Ltd. As the company secretary, the board of the company
approaches you for advice.
With reference to the principle of Ubuntu as expressed by Madala J in the case of S v
Makwanyane 1995 (6) BCLR 665 (CC) and the facts in the scenario above, advise the board of
Cool Coals (Pty) Ltd on whether the payment of university bursaries may be justified on the
basis of the principle of Ubuntu, or whether the profits of the company should be distributed
exclusively to its shareholders. (5)
Ubuntu refers to the saying umuntu ngumuntu ngabantu, which means a person is a person
through others. In the case of S v Makwanyane 1995 (6) BCLR 665 (CC), Madala J expressed the
view that ubuntu advocates social justice and fairness.
ANSWER CONTINUED ON THE NEXT PAGE:
2
