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LML4806 Assignment 1 (COMPLETE ANSWERS) Semester 2 2025 - DUE August 2025

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LML4806 Assignment 1 (COMPLETE ANSWERS) Semester 2 2025 - DUE August 2025; 100% TRUSTED Complete, trusted solutions and explanations. For assistance, Whats-App 0.6.7-1.7.1-1.7.3.9. Ensure your success with us. ...Question: 1 You are approached by Stefan, the chairperson of the board of directors of JP Textiles Ltd for legal advice. He informs you that JP Textiles Ltd will be holding its fifth annual general meeting (AGM) next month at its registered office in Johannesburg. He further informs you that the board of directors is concerned that a significant number of the company’s shareholders and shareholder proxies who are based outside Johannesburg and overseas will not be able to travel to Johannesburg to attend the AGM in-person (physically) at the company’s registered office. Advise Stefan on what the company could do to ensure that it provides a reasonable opportunity for all the shareholders and shareholder proxies to attend and participate at its fifth AGM. (5) Question: 2 SA Renewables Ltd holds 40% of the ordinary shares in Green Energy Ltd and 100% of the ordinary shares in New Technologies Ltd. New Technologies Ltd holds 25% of the ordinary shares 4 in Green Energy Ltd. Green Energy Ltd wants to issue shares to raise cash. An investment company called Investment Solutions (Pty) Ltd wants to purchase the shares to be issued by Green Energy Ltd. However, Investment Solutions (Pty) Ltd does not have the money for the shares and requires a loan to purchase the shares. Therefore, the directors of SA Renewables Ltd, Green Energy Ltd and Investment Solutions (Pty) Ltd are negotiating a transaction in terms of which: • Investment Solutions (Pty) Ltd will purchase 10% of the shares to be issued by Green Energy Ltd; • The consideration for the shares will be paid for by a loan of R250 million that will be obtained by Investment Solutions (Pty) Ltd from Capital Bank Ltd; • SA Renewables Ltd will assure Capital Bank Ltd that Investment Solutions (Pty) Ltd will repay the loan; and • SA Renewables Ltd will give an undertaking to Capital Bank Ltd that, should Investment Solutions (Pty) Ltd fail to repay the loan, SA Renewables Ltd will step into Investment Solutions (Pty) Ltd’s shoes and repay the loan to Capital Bank Ltd directly. 2.1 Explain whether SA Renewables Ltd and Green Energy Ltd are related companies. (5) 2.2 Discuss the formalities and procedures that must be complied with before the board of directors may authorise the conclusion of an agreement in terms of which SA Renewables Ltd will assume the obligation to repay the loan in question to Capital Bank Ltd in the event that Investment Solutions (Pty) Ltd fails to do so. Also explain what the implications would be if SA Renewables Ltd concludes the agreement contrary to the required formalities and procedures. (10)

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Subido en
22 de julio de 2025
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Escrito en
2024/2025
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LML4806
Assignment 1 Semester 2 2025
Unique Number:

Due Date: August 2025
QUESTION 1

JP Textiles Ltd may make provision for shareholders and their proxies to participate in the
upcoming annual general meeting (AGM) via electronic communication, provided this is not
prohibited by the company’s Memorandum of Incorporation (MOI).1 Section 63(2) of the
Companies Act 71 of 2008 specifically allows for electronic attendance if the participants can
communicate concurrently and reasonably effectively without an intermediary.1

If the company chooses to allow such participation, it must include in the notice convening
the meeting a clear statement that electronic participation is available. The notice should also
contain sufficient information to enable shareholders and proxies to access the chosen
electronic platform.1 For example, a Microsoft Teams link with a user-friendly manual would
be acceptable.1




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