, LML4806 Assignment 2 (COMPLETE ANSWERS)
Semester 2 2025 – DUE September 2025; 100% correct
solutions and explanations.
Question 1
With reference to the Companies Act 71 of 2008, relevant case law
and the facts provided, discuss whether Lerato has breached any
specific fiduciary duties she owed to Internet World (Pty) Ltd. Also
consider the validity of Lerato’s argument that she did not breach
her fiduciary duties to Internet World (Pty) Ltd since she signed the
contract with Skylab (Pty) Ltd only after she had resigned from
Internet World (Pty) Ltd.
Introduction
This question requires an in-depth analysis of the fiduciary duties
imposed on company directors under the Companies Act 71 of 2008 and
common law, and whether a director can be held liable for actions taken
after their resignation if the opportunity was acquired due to their
position as a director. The facts provided suggest that Lerato took
advantage of a lucrative business opportunity intended for Internet
World (Pty) Ltd, raising the question of whether her conduct constitutes
a breach of fiduciary duties.
Fiduciary Duties of Directors: Companies Act 71 of 2008
In South African company law, directors owe fiduciary duties to their
companies. These duties are codified under the Companies Act 71 of
2008, specifically in section 76. Key duties include:
Section 76(3)(a): A director must exercise their powers and
perform their functions in good faith and for a proper purpose.
Semester 2 2025 – DUE September 2025; 100% correct
solutions and explanations.
Question 1
With reference to the Companies Act 71 of 2008, relevant case law
and the facts provided, discuss whether Lerato has breached any
specific fiduciary duties she owed to Internet World (Pty) Ltd. Also
consider the validity of Lerato’s argument that she did not breach
her fiduciary duties to Internet World (Pty) Ltd since she signed the
contract with Skylab (Pty) Ltd only after she had resigned from
Internet World (Pty) Ltd.
Introduction
This question requires an in-depth analysis of the fiduciary duties
imposed on company directors under the Companies Act 71 of 2008 and
common law, and whether a director can be held liable for actions taken
after their resignation if the opportunity was acquired due to their
position as a director. The facts provided suggest that Lerato took
advantage of a lucrative business opportunity intended for Internet
World (Pty) Ltd, raising the question of whether her conduct constitutes
a breach of fiduciary duties.
Fiduciary Duties of Directors: Companies Act 71 of 2008
In South African company law, directors owe fiduciary duties to their
companies. These duties are codified under the Companies Act 71 of
2008, specifically in section 76. Key duties include:
Section 76(3)(a): A director must exercise their powers and
perform their functions in good faith and for a proper purpose.
