MRL3701
EXAM PACK
, lOMoARcPSD|18222662
CONFIDENTIAL
8 of 11
MRL3701
May/June 2024
Question 1
1.1 When a debtor is sequestrated, a Master is appointed to administer the estate. Answer
the following questions regarding the appointment of the Master: (5)
(a) In terms of which piece of legislation is the Master appointed? [1]
(b) What is the pivotal role and function of the Master? [2]
(c) What is meant by saying the Master is a “creature of statute”? [2]
1.2 Certain sections of the Insolvency Act 24 of 1936 have been amended over time, but it
remains one of the oldest statutes of general application still in force. It is therefore
difficult to synchronise the application of the Act with legal, economic, technological and
commercial advances. It is imperative that the South African Insolvency Law be
reformed. Discuss five (5) initiatives that have been identified that can assist in law
reform. (5)
1.3 The Eastern Cape High Court has given a judgment of R80 000 against Jonah in favour
of Zanele. Upon the demand of the officer whose duty it is to execute the judgment,
Jonah fails to satisfy it and also fails to indicate to the officer disposable property
sufficient to satisfy the judgment. The return made by the officer states that he has not
found sufficient disposable property to satisfy the judgment. Explain to Zanele what the
implications of the aforementioned facts may be. (10)
1.4 See the table below and match the columns to answer the following questions. You must
therefore match three columns; case name, ratio decidendi of the case, and area of
Insolvency Law applicable and answer the question as follows on your exam answer
sheet (see example below). (15)
, lOMoARcPSD|18222662
CONFIDENTIAL
9 of 11
MRL3701
May/June 2024
EXAMPLE:
1. Case name: Joint Liquidators of Glen Anil v Hill Samuel 1982 (1) SA 103 (A).
2. Ratio decidendi of the case: The bonds in favour of Hill Samual did confer a
preferent status.
3. Area of Insolvency Law applicable: Special Mortgages.
Case Name: (1/2) Ratio decidendi of the case: (1) Area of
Insolvency
Law
applicable:
(1/2)
Magnum Financial Section 21 of the Insolvency Act 24 of 1936 Disposition in
Holdings (Pty) Ltd v authorises the Master that the trustee may attach the ordinary
Summerly & the property of the Solvent Spouse. course of
Another NNO 1984 business.
(1) SA 160 W
Hendriks NO v With the disappearance of the companies Meaning of the
Swanepoel 1962 (4) substratum, if there is fraud committed, a word “debtor”.
SA 338 (A) deadlock in management, the dissolution of a
partnership and oppression.
Harksen v Lane NO The question to be decided was whether the trust Property which
& Others 1998 (1) before the court was susceptible of sequestration. falls in the
SA 300 (CC) insolvent estate.
Vorster NO v Steyn An exception to section 29 of the Insolvency Act When is it just
1981 (2) A 831 (O) 24 of 1936 is that a disposition is allowed if it is an equitable for
done in the ordinary course of business. a company to
be wound up by
court.
, lOMoARcPSD|18222662
CONFIDENTIAL
11 of 11
MRL3701
May/June 2024
Question 3
3.1 Regarding the transfer of a business without prescribed notice, discuss section 34(1) of
the Insolvency Act 24 of 1936. (10)
3.2 The liquidator of a company may in certain circumstances be removed from office before
he has completed his duties as a liquidator. Discuss the instances where these rules
apply. (10)
3.3 In the case of Business Rescue Proceedings, what does the phrase ‘rescuing the
company’ mean? (5)
TOTAL QUESTION 3: [25]
__________________________________________________________________________
TOTAL MARKS: [100]
©
UNISA 2024
EXAM PACK
, lOMoARcPSD|18222662
CONFIDENTIAL
8 of 11
MRL3701
May/June 2024
Question 1
1.1 When a debtor is sequestrated, a Master is appointed to administer the estate. Answer
the following questions regarding the appointment of the Master: (5)
(a) In terms of which piece of legislation is the Master appointed? [1]
(b) What is the pivotal role and function of the Master? [2]
(c) What is meant by saying the Master is a “creature of statute”? [2]
1.2 Certain sections of the Insolvency Act 24 of 1936 have been amended over time, but it
remains one of the oldest statutes of general application still in force. It is therefore
difficult to synchronise the application of the Act with legal, economic, technological and
commercial advances. It is imperative that the South African Insolvency Law be
reformed. Discuss five (5) initiatives that have been identified that can assist in law
reform. (5)
1.3 The Eastern Cape High Court has given a judgment of R80 000 against Jonah in favour
of Zanele. Upon the demand of the officer whose duty it is to execute the judgment,
Jonah fails to satisfy it and also fails to indicate to the officer disposable property
sufficient to satisfy the judgment. The return made by the officer states that he has not
found sufficient disposable property to satisfy the judgment. Explain to Zanele what the
implications of the aforementioned facts may be. (10)
1.4 See the table below and match the columns to answer the following questions. You must
therefore match three columns; case name, ratio decidendi of the case, and area of
Insolvency Law applicable and answer the question as follows on your exam answer
sheet (see example below). (15)
, lOMoARcPSD|18222662
CONFIDENTIAL
9 of 11
MRL3701
May/June 2024
EXAMPLE:
1. Case name: Joint Liquidators of Glen Anil v Hill Samuel 1982 (1) SA 103 (A).
2. Ratio decidendi of the case: The bonds in favour of Hill Samual did confer a
preferent status.
3. Area of Insolvency Law applicable: Special Mortgages.
Case Name: (1/2) Ratio decidendi of the case: (1) Area of
Insolvency
Law
applicable:
(1/2)
Magnum Financial Section 21 of the Insolvency Act 24 of 1936 Disposition in
Holdings (Pty) Ltd v authorises the Master that the trustee may attach the ordinary
Summerly & the property of the Solvent Spouse. course of
Another NNO 1984 business.
(1) SA 160 W
Hendriks NO v With the disappearance of the companies Meaning of the
Swanepoel 1962 (4) substratum, if there is fraud committed, a word “debtor”.
SA 338 (A) deadlock in management, the dissolution of a
partnership and oppression.
Harksen v Lane NO The question to be decided was whether the trust Property which
& Others 1998 (1) before the court was susceptible of sequestration. falls in the
SA 300 (CC) insolvent estate.
Vorster NO v Steyn An exception to section 29 of the Insolvency Act When is it just
1981 (2) A 831 (O) 24 of 1936 is that a disposition is allowed if it is an equitable for
done in the ordinary course of business. a company to
be wound up by
court.
, lOMoARcPSD|18222662
CONFIDENTIAL
11 of 11
MRL3701
May/June 2024
Question 3
3.1 Regarding the transfer of a business without prescribed notice, discuss section 34(1) of
the Insolvency Act 24 of 1936. (10)
3.2 The liquidator of a company may in certain circumstances be removed from office before
he has completed his duties as a liquidator. Discuss the instances where these rules
apply. (10)
3.3 In the case of Business Rescue Proceedings, what does the phrase ‘rescuing the
company’ mean? (5)
TOTAL QUESTION 3: [25]
__________________________________________________________________________
TOTAL MARKS: [100]
©
UNISA 2024
