AUI4862 Assignment 2
(COMPLETE ANSWERS)
2025 - DUE 2025
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Email:
, Question 1.1
The Companies Act 2008 governs situations where there is a personal financial interest of the
director in a contract. In this case, Thabo Shabalala, as a director of Holiday Factory (Pty) Ltd,
has a brother, Oscar, as the biggest shareholder of Iceland (Pty) Ltd,
the contracting company of Holiday Factory. This suggests a potential personal financial
interest of Thabo's.
Holiday Factory (Pty) Ltd's Memorandum of Incorporation states so and emphasizes that the
director must comply with the Companies Act 2008, and a general meeting can make the
contract binding only by its approval under a poll.
Key Requirements of the Companies Act 2008 (Implicit from the Text):
Disclosure: The director with the personal pecuniary interest must disclose it to the company.
Approval: The contract has to be approved by a general meeting of shareholders, polling.
Question 1.2
The audit addresses compliance of a project between Holiday Factory (Pty) Ltd and the SA
Navy, funded by US-based international organizations.
The applicable legislation, regulations, and international acts could include:
South African Legislation: Any South African legislation relating to public finance management,
procurement, and anti-corruption since the SA Navy is a public entity.
International Laws:
Laws of the international organizations providing funding, as such organizations may have
specific compliance requirements.
International anti-corruption laws, in light of the utilization of international funding and
organizations.
Acts: Since the investor companies are quoted on foreign exchanges,
acts of such jurisdictions can apply.
Risk management activity Role player
Senior management/Risk
a) Understanding all the key risks Management Dept
b) Ensuring that the treatment of all the high risks is Senior management/Risk
effective Management Dept
(COMPLETE ANSWERS)
2025 - DUE 2025
For assistance contact
Email:
, Question 1.1
The Companies Act 2008 governs situations where there is a personal financial interest of the
director in a contract. In this case, Thabo Shabalala, as a director of Holiday Factory (Pty) Ltd,
has a brother, Oscar, as the biggest shareholder of Iceland (Pty) Ltd,
the contracting company of Holiday Factory. This suggests a potential personal financial
interest of Thabo's.
Holiday Factory (Pty) Ltd's Memorandum of Incorporation states so and emphasizes that the
director must comply with the Companies Act 2008, and a general meeting can make the
contract binding only by its approval under a poll.
Key Requirements of the Companies Act 2008 (Implicit from the Text):
Disclosure: The director with the personal pecuniary interest must disclose it to the company.
Approval: The contract has to be approved by a general meeting of shareholders, polling.
Question 1.2
The audit addresses compliance of a project between Holiday Factory (Pty) Ltd and the SA
Navy, funded by US-based international organizations.
The applicable legislation, regulations, and international acts could include:
South African Legislation: Any South African legislation relating to public finance management,
procurement, and anti-corruption since the SA Navy is a public entity.
International Laws:
Laws of the international organizations providing funding, as such organizations may have
specific compliance requirements.
International anti-corruption laws, in light of the utilization of international funding and
organizations.
Acts: Since the investor companies are quoted on foreign exchanges,
acts of such jurisdictions can apply.
Risk management activity Role player
Senior management/Risk
a) Understanding all the key risks Management Dept
b) Ensuring that the treatment of all the high risks is Senior management/Risk
effective Management Dept
