,LML4806 Assignment 1 (COMPLETE ANSWERS)
Semester 2 2025 - DUE August 2025; 100%
TRUSTED Complete, trusted solutions and
explanations.
Consolidated Investments Ltd is a company that invests in
mining businesses in South Africa. Its business undertaking
consists solely of its shareholdings in three companies, as
follows: • It holds 100% of the ordinary shares in Reef Iron Ore
Ltd. • It holds 58% of the ordinary shares in Creek Gold (Pty)
Ltd. The remaining ordinary shares in Creek Gold (Pty) Ltd are
held by various individual and institutional shareholders. • It
holds 30% of the ordinary shares in Millenium Platinum Ltd. The
remaining 70% of the ordinary shares in Millenium Platinum Ltd
are held by Creek Gold (Pty) Ltd. With reference to the
Companies Act 71 of 2008: Explain whether the companies in
the scenario above constitute a group of companies. (5) Discuss
the main consequences that flow from the existence of a group
of companies. Briefly discuss the options that are available to
the chairperson or presiding officer at a shareholders’ meeting
when it is established that the meeting lacks a proper quorum
for the meeting to begin or for a specific matter to be
considered. (5) The board of directors of Isondo (Pty) Ltd is
contemplating issuing shares to Varsha who is currently not a
shareholder of the company. Varsha’s brother, Vishal, is a
prescribed officer and shareholder of Isondo (Pty) Ltd. The
, board is concerned whether its decision to issue the shares to
Varsha may contravene the provisions of the Companies Act 71
of 2008. Answer the following questions with reference to the
Companies Act 71 of 2008 and the facts provided: Advise the
board of directors of Isondo (Pty) Ltd whether it may proceed to
issue the shares to Varsha without obtaining shareholder
approval. (5) 1.2.2 Advise the board of directors on the meaning
and rationale of pre-emptive rights, and on whether the current
shareholders of Isondo (Pty) Ltd have any rights of pre-emption.
(10) QUESTION 2 [20] 2.1 ABC Nominees (Pty) Ltd and
Richmond Fund Managers Ltd hold 3% and 8% of the voting
rights associated with the issued ordinary shares of Norfolk
Resources Ltd, respectively. ABC Nominees (Pty) Ltd and
Richmond Fund Managers Ltd believe that Norfolk Resources
Ltd’s oil and gas business is failing due to the incompetence of
the two executive directors, Lungile and Martin, who have been
given the responsibility to manage that business. ABC
Nominees (Pty) Ltd and Richmond Fund Managers Ltd have,
therefore, submitted a written and signed demand for Norfolk
Resources Ltd to hold a shareholders’ meeting to reconstitute
its board of directors by removing Lungile and Martin as
directors. With reference to the Companies Act 71 of 2008,
advise the board of directors on the procedural requirements
that Norfolk Resources Ltd must follow before the removal of
Lungile and Martin as directors may be considered by the
Semester 2 2025 - DUE August 2025; 100%
TRUSTED Complete, trusted solutions and
explanations.
Consolidated Investments Ltd is a company that invests in
mining businesses in South Africa. Its business undertaking
consists solely of its shareholdings in three companies, as
follows: • It holds 100% of the ordinary shares in Reef Iron Ore
Ltd. • It holds 58% of the ordinary shares in Creek Gold (Pty)
Ltd. The remaining ordinary shares in Creek Gold (Pty) Ltd are
held by various individual and institutional shareholders. • It
holds 30% of the ordinary shares in Millenium Platinum Ltd. The
remaining 70% of the ordinary shares in Millenium Platinum Ltd
are held by Creek Gold (Pty) Ltd. With reference to the
Companies Act 71 of 2008: Explain whether the companies in
the scenario above constitute a group of companies. (5) Discuss
the main consequences that flow from the existence of a group
of companies. Briefly discuss the options that are available to
the chairperson or presiding officer at a shareholders’ meeting
when it is established that the meeting lacks a proper quorum
for the meeting to begin or for a specific matter to be
considered. (5) The board of directors of Isondo (Pty) Ltd is
contemplating issuing shares to Varsha who is currently not a
shareholder of the company. Varsha’s brother, Vishal, is a
prescribed officer and shareholder of Isondo (Pty) Ltd. The
, board is concerned whether its decision to issue the shares to
Varsha may contravene the provisions of the Companies Act 71
of 2008. Answer the following questions with reference to the
Companies Act 71 of 2008 and the facts provided: Advise the
board of directors of Isondo (Pty) Ltd whether it may proceed to
issue the shares to Varsha without obtaining shareholder
approval. (5) 1.2.2 Advise the board of directors on the meaning
and rationale of pre-emptive rights, and on whether the current
shareholders of Isondo (Pty) Ltd have any rights of pre-emption.
(10) QUESTION 2 [20] 2.1 ABC Nominees (Pty) Ltd and
Richmond Fund Managers Ltd hold 3% and 8% of the voting
rights associated with the issued ordinary shares of Norfolk
Resources Ltd, respectively. ABC Nominees (Pty) Ltd and
Richmond Fund Managers Ltd believe that Norfolk Resources
Ltd’s oil and gas business is failing due to the incompetence of
the two executive directors, Lungile and Martin, who have been
given the responsibility to manage that business. ABC
Nominees (Pty) Ltd and Richmond Fund Managers Ltd have,
therefore, submitted a written and signed demand for Norfolk
Resources Ltd to hold a shareholders’ meeting to reconstitute
its board of directors by removing Lungile and Martin as
directors. With reference to the Companies Act 71 of 2008,
advise the board of directors on the procedural requirements
that Norfolk Resources Ltd must follow before the removal of
Lungile and Martin as directors may be considered by the
