LML4806 Assignment 1 (COMPLETE ANSWERS) Semester 1 2026 - DUE March 2026; With
reference to the Companies Act 71 of 2008 and appropriate authority,
indicate the type of company that Multicuisine Ramatla (RF) Ltd falls under
and discuss in detail whether Multicuisine Ltd has provided financial
assistance for the purchase of its securities. Multicuisine Ltd wishes to sell
shares to a newly incorporated company called Multicuisine Ramatla (RF) Ltd
to enable Multicuisine Ltd to comply with Broad-Based Black Economic
Empowerment (BBBEE) legislation in South Africa. Multicuisine Ramatla (RF)
Ltd does not have the money to pay for the shares. Multicuisine Ltd provides
a loan of R85 million to Multicuisine Ramatla (RF) Ltd, and Multicuisine
Ramatla (RF) Ltd uses the loan to purchase 850 000 ordinary shares in
Multicuisine Ltd. This loan is to be repaid over a period of 10 years by using
the dividends declared by Multicuisine Ltd.
LML4806 – MERGERS & ACQUISITIONS
LAW
DOCUMENT INFORMATION
Title:
LML4806 Assignment 1 – Financial Assistance, BBBEE, and Share Transactions (2026)
Module: LML4806 – Corporate & Commercial Law
Institution: UNISA
Study Year: 2026
, Document Type: Complete Assignment Answers with Legal Analysis
Description:
This document contains detailed, trusted solutions to LML4806 Assignment 1. It addresses the
provision of financial assistance for share purchases, company types under the Companies Act
71 of 2008, compliance with BBBEE legislation, and the legal consequences of intra-group
financing.
Tags
LML4806, Assignment 1, Companies Act 71 of 2008, Financial Assistance, BBBEE, Corporate
Law, Share Transactions, UNISA 2026
TABLE OF CONTENTS
1. Introduction
2. Type of Company – Multicuisine Ramatla (RF) Ltd
3. Provision of Financial Assistance – Legal Analysis
4. BBBEE Compliance and Financial Assistance Implications
5. Potential Legal Risks and Remedies
6. Recommendations for Multicuisine Ltd
7. Conclusion
1. INTRODUCTION
This assignment evaluates a scenario in which Multicuisine Ltd seeks to sell shares to a newly
incorporated company, Multicuisine Ramatla (RF) Ltd, to comply with Broad-Based Black
Economic Empowerment (BBBEE) legislation. The key issue is whether Multicuisine Ltd has
provided financial assistance for the purchase of its own securities, which is regulated under
Sections 44 and 45 of the Companies Act 71 of 2008.
2. TYPE OF COMPANY – MULTICUISINE RAMATLA
(RF) LTD
2.1 Relevant Companies Act Provisions
Section 8 of the Companies Act 71 of 2008 defines the types of companies in South
Africa.
Companies can be:
reference to the Companies Act 71 of 2008 and appropriate authority,
indicate the type of company that Multicuisine Ramatla (RF) Ltd falls under
and discuss in detail whether Multicuisine Ltd has provided financial
assistance for the purchase of its securities. Multicuisine Ltd wishes to sell
shares to a newly incorporated company called Multicuisine Ramatla (RF) Ltd
to enable Multicuisine Ltd to comply with Broad-Based Black Economic
Empowerment (BBBEE) legislation in South Africa. Multicuisine Ramatla (RF)
Ltd does not have the money to pay for the shares. Multicuisine Ltd provides
a loan of R85 million to Multicuisine Ramatla (RF) Ltd, and Multicuisine
Ramatla (RF) Ltd uses the loan to purchase 850 000 ordinary shares in
Multicuisine Ltd. This loan is to be repaid over a period of 10 years by using
the dividends declared by Multicuisine Ltd.
LML4806 – MERGERS & ACQUISITIONS
LAW
DOCUMENT INFORMATION
Title:
LML4806 Assignment 1 – Financial Assistance, BBBEE, and Share Transactions (2026)
Module: LML4806 – Corporate & Commercial Law
Institution: UNISA
Study Year: 2026
, Document Type: Complete Assignment Answers with Legal Analysis
Description:
This document contains detailed, trusted solutions to LML4806 Assignment 1. It addresses the
provision of financial assistance for share purchases, company types under the Companies Act
71 of 2008, compliance with BBBEE legislation, and the legal consequences of intra-group
financing.
Tags
LML4806, Assignment 1, Companies Act 71 of 2008, Financial Assistance, BBBEE, Corporate
Law, Share Transactions, UNISA 2026
TABLE OF CONTENTS
1. Introduction
2. Type of Company – Multicuisine Ramatla (RF) Ltd
3. Provision of Financial Assistance – Legal Analysis
4. BBBEE Compliance and Financial Assistance Implications
5. Potential Legal Risks and Remedies
6. Recommendations for Multicuisine Ltd
7. Conclusion
1. INTRODUCTION
This assignment evaluates a scenario in which Multicuisine Ltd seeks to sell shares to a newly
incorporated company, Multicuisine Ramatla (RF) Ltd, to comply with Broad-Based Black
Economic Empowerment (BBBEE) legislation. The key issue is whether Multicuisine Ltd has
provided financial assistance for the purchase of its own securities, which is regulated under
Sections 44 and 45 of the Companies Act 71 of 2008.
2. TYPE OF COMPANY – MULTICUISINE RAMATLA
(RF) LTD
2.1 Relevant Companies Act Provisions
Section 8 of the Companies Act 71 of 2008 defines the types of companies in South
Africa.
Companies can be:
