LML4806 Company Law
Semester 2 Assignment 1 - 2025
, Question: 1
Stefan, as chairperson of JP Textiles Ltd, is rightly concerned about the upcoming fifth
annual general meeting (AGM), especially since many shareholders and proxies are
located outside Johannesburg or overseas and may not attend in person. To ensure
that all shareholders have a reasonable opportunity to participate, the company should
consider allowing electronic participation at the AGM. According to the Companies Act
71 of 2008, companies are permitted to hold meetings by electronic means, such as
video conferencing or teleconferencing, provided that the company’s Memorandum of
Incorporation (MOI) allows it or the shareholders consent (Companies Act, 2008, s
63(2)). This “hybrid” approach, combining physical and electronic attendance, would
enable remote shareholders to engage in discussions and vote in real time without the
need to travel.
It is also important to verify whether JP Textiles’ MOI contains provisions about
electronic meetings. If not, the company might need to amend the MOI to accommodate
this modern practice. Alongside electronic participation, encouraging shareholders to
appoint proxies who can attend and vote on their behalf is a practical solution. The
company must provide clear instructions about how proxies can be appointed, including
electronic submission options, so shareholders who cannot attend in any form can still
exercise their voting rights (Companies Act, 2008, s 58).
Finally, proper notice of the AGM must be sent out at least 15 business days in
advance, detailing all participation options, including how to join electronically or appoint
a proxy. Clear communication helps shareholders prepare adequately, promoting
transparency and inclusivity (Companies Act, 2008, s 61). By adopting these measures,
JP Textiles will meet its legal obligations and foster meaningful shareholder
engagement.
Question: 2
2.1 Are SA Renewables Ltd and Green Energy Ltd Related Companies?
Semester 2 Assignment 1 - 2025
, Question: 1
Stefan, as chairperson of JP Textiles Ltd, is rightly concerned about the upcoming fifth
annual general meeting (AGM), especially since many shareholders and proxies are
located outside Johannesburg or overseas and may not attend in person. To ensure
that all shareholders have a reasonable opportunity to participate, the company should
consider allowing electronic participation at the AGM. According to the Companies Act
71 of 2008, companies are permitted to hold meetings by electronic means, such as
video conferencing or teleconferencing, provided that the company’s Memorandum of
Incorporation (MOI) allows it or the shareholders consent (Companies Act, 2008, s
63(2)). This “hybrid” approach, combining physical and electronic attendance, would
enable remote shareholders to engage in discussions and vote in real time without the
need to travel.
It is also important to verify whether JP Textiles’ MOI contains provisions about
electronic meetings. If not, the company might need to amend the MOI to accommodate
this modern practice. Alongside electronic participation, encouraging shareholders to
appoint proxies who can attend and vote on their behalf is a practical solution. The
company must provide clear instructions about how proxies can be appointed, including
electronic submission options, so shareholders who cannot attend in any form can still
exercise their voting rights (Companies Act, 2008, s 58).
Finally, proper notice of the AGM must be sent out at least 15 business days in
advance, detailing all participation options, including how to join electronically or appoint
a proxy. Clear communication helps shareholders prepare adequately, promoting
transparency and inclusivity (Companies Act, 2008, s 61). By adopting these measures,
JP Textiles will meet its legal obligations and foster meaningful shareholder
engagement.
Question: 2
2.1 Are SA Renewables Ltd and Green Energy Ltd Related Companies?
