MRL2601 Assignment 2
(COMPLETE ANSWERS)
Semester 2 2025 - DUE
September 2025
[Document subtitle]
[School]
[Course title]
, MRL2601 Assignment 2 (COMPLETE ANSWERS) Semester 2 2025 - DUE September 2025
Course
Entrepreneurial Law (MRL2601)
Institution
University Of South Africa (Unisa)
Book
New Entrepreneurial Law
MRL2601 Assignment 2 (COMPLETE ANSWERS) Semester 2 2025 - DUE September 2025; 100%
TRUSTED Complete, trusted solutions and explanations.
Bapela, Babra and Maite decided to establish a close corporation. The close corporation
specialises in the renovation of immovable property, offering a range of services that enhance
and restore various types of real estate. Recognising the importance of clarity and structure in
their professional relationship, Bapela, Babra, and Maite, who are all members of the close
corporation, have decided to draft an association agreement, which details specific rules and
regulations that govern their respective duties and responsibilities within the corporation. Part
of the association agreement is that no member should be able to contract services outside
their specialities. Bapela, while acting on behalf of the close corporation, concludes a contract
with Tment Pty (Ltd) to sell cars which fall outside the scope of the close corporation. As a
result, Bapela’s actions have affected the close corporation’s operations. Discuss whether
Bapela has the authority to conclude such a contract, Explain what the principle of corporate
social responsibility entails and provide examples of how this principle is reflected in the
Companies Act 71 of 2008. With reference to the relevant case law and appropriate sources,
explain the legal consequences of a company’s separate legal personality
[
1. Authority of Bapela to conclude a contract outside the close corporation’s scope
Close Corporation and its Members’ Authority:
A close corporation (CC) is a separate legal entity distinct from its members. Members manage
the CC but must act within the scope of the corporation’s business.
Association Agreement Restriction:
Bapela, Babra, and Maite agreed in their association agreement that no member should
contract services outside their specialties.
(COMPLETE ANSWERS)
Semester 2 2025 - DUE
September 2025
[Document subtitle]
[School]
[Course title]
, MRL2601 Assignment 2 (COMPLETE ANSWERS) Semester 2 2025 - DUE September 2025
Course
Entrepreneurial Law (MRL2601)
Institution
University Of South Africa (Unisa)
Book
New Entrepreneurial Law
MRL2601 Assignment 2 (COMPLETE ANSWERS) Semester 2 2025 - DUE September 2025; 100%
TRUSTED Complete, trusted solutions and explanations.
Bapela, Babra and Maite decided to establish a close corporation. The close corporation
specialises in the renovation of immovable property, offering a range of services that enhance
and restore various types of real estate. Recognising the importance of clarity and structure in
their professional relationship, Bapela, Babra, and Maite, who are all members of the close
corporation, have decided to draft an association agreement, which details specific rules and
regulations that govern their respective duties and responsibilities within the corporation. Part
of the association agreement is that no member should be able to contract services outside
their specialities. Bapela, while acting on behalf of the close corporation, concludes a contract
with Tment Pty (Ltd) to sell cars which fall outside the scope of the close corporation. As a
result, Bapela’s actions have affected the close corporation’s operations. Discuss whether
Bapela has the authority to conclude such a contract, Explain what the principle of corporate
social responsibility entails and provide examples of how this principle is reflected in the
Companies Act 71 of 2008. With reference to the relevant case law and appropriate sources,
explain the legal consequences of a company’s separate legal personality
[
1. Authority of Bapela to conclude a contract outside the close corporation’s scope
Close Corporation and its Members’ Authority:
A close corporation (CC) is a separate legal entity distinct from its members. Members manage
the CC but must act within the scope of the corporation’s business.
Association Agreement Restriction:
Bapela, Babra, and Maite agreed in their association agreement that no member should
contract services outside their specialties.
