LML4806
ASSIGNMENT 1 SEMESTER 2 2025
UNIQUE NO.
DUE DATE: 2025
, Company Law
Question 1
Advice to Stefan:
Stefan, since JP Textiles Ltd is about to hold its fifth annual general meeting (AGM) and
many shareholders won’t be able to attend in person, the Companies Act 71 of 2008
does give you some flexibility. Specifically, section 63(2) says that a company must
provide a reasonable opportunity for shareholders (and proxies) to attend, participate in,
and vote at shareholder meetings.
This means that the company doesn’t have to limit the AGM to a physical meeting only.
You can allow participation via electronic communication (like Zoom or Microsoft
Teams), as long as it's done in a way that allows for real-time interaction. In other
words, shareholders need to be able to listen, speak, and vote just like those attending
in person.
To comply, JP Textiles Ltd should make sure that:
Shareholders are informed in advance that they can attend electronically.
The platform used is reliable and accessible to everyone.
There are measures in place to verify the identities of shareholders or proxies
before they vote (as per section 63(1)).
Using these electronic facilities will help ensure that all shareholders, even those
overseas, have a fair chance to participate in the AGM.
ASSIGNMENT 1 SEMESTER 2 2025
UNIQUE NO.
DUE DATE: 2025
, Company Law
Question 1
Advice to Stefan:
Stefan, since JP Textiles Ltd is about to hold its fifth annual general meeting (AGM) and
many shareholders won’t be able to attend in person, the Companies Act 71 of 2008
does give you some flexibility. Specifically, section 63(2) says that a company must
provide a reasonable opportunity for shareholders (and proxies) to attend, participate in,
and vote at shareholder meetings.
This means that the company doesn’t have to limit the AGM to a physical meeting only.
You can allow participation via electronic communication (like Zoom or Microsoft
Teams), as long as it's done in a way that allows for real-time interaction. In other
words, shareholders need to be able to listen, speak, and vote just like those attending
in person.
To comply, JP Textiles Ltd should make sure that:
Shareholders are informed in advance that they can attend electronically.
The platform used is reliable and accessible to everyone.
There are measures in place to verify the identities of shareholders or proxies
before they vote (as per section 63(1)).
Using these electronic facilities will help ensure that all shareholders, even those
overseas, have a fair chance to participate in the AGM.
