LML4806 Company Law Assignment 2 Semester 1 2025 | UNISA

Published: 22 May, 2025
Category Assignment Subject Law
University University of South Africa Module Title LML4806 Company Law

General Instructions

  • Assignments test your understanding of the learning material and your ability to apply what you have learnt. Two written assignments are set for this module, i.e., Assignment 1 and Assignment 2. Answering these questions gives you practice in answering the type of questions that you may expect in the examination.  
  • The marks you obtain for Assignment 1 and Assignment 2 make up your year mark.
  • You should answer all questions under each assignment. Your answer to each assignment should generally not exceed two and a half pages if it is typed (excluding the bibliography).
  • You should reference your sources in your answers. You may reference the sources as you wish (e.g., in-text or in the footnotes), but you should reference your sources within the text of your answers. It is not mandatory to include a bibliography if you have referenced your sources within the text of your answers or in the footnotes. In such a case, you may include a bibliography at the end of your assignment voluntarily. However, you should remember to include your Honesty Declaration Form. 
  • Refer to  Paragraph  9  of your  Tutorial  Letter  101  for the general assessment information.  
  • Also refer to Paragraph 10 of your Tutorial Letter 101 for important information regarding academic dishonesty (plagiarism and cheating).
  • You should study and refer to the prescribed study material when answering your assignments. You should not use Artificial Intelligence Software (e.g., ChatGPT) to give you answers to the assignment questions, as this will prevent you from achieving the learning objectives as well as attaining all the skills and values needed in legal practice. Artificial Intelligence Software can give you inaccurate answers that are not aligned with the prescribed study material. The University can easily identify the answers obtained from Artificial Intelligence Software, and the markers will award a zero mark for such answers. Furthermore,  students who engage in academic dishonesty  may  be referred to a disciplinary hearing.  

Assignment 2    

Question: 1  

Mashudu and Peter are the only directors of Star Engineering (Pty) Ltd. Peter was appointed as an executive director of Star Engineering (Pty) Ltd two years ago under a five-year contract of employment with the company. Mashudu is concerned that for the past two financial years, Peter has been failing to ensure the timely preparation and submission of the company’s annual financial statements,  and that  Peter omitted to sign the annual financial statements for the previous financial year as the authorised director, as required. Mashudu approaches you for legal advice regarding the removal of a company director. Advise Mashudu on the following matters:   

  • Whether there is any valid basis to remove Peter as a director of Star Engineering (Pty) Ltd.  (30)
  • The  procedure  that  must  be  followed  and  the  rights  that  Peter  has  in  terms  of  the Companies Act 71 of 2008 should Mashudu decide that he (Peter) must be removed as a director of Star Engineering (Pty) Ltd. (12)  

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Question: 2  

Springbok Finance (Pty) Ltd is one of the creditors of Falcon Airlines Ltd. The board of directors of Falcon Airlines Ltd passed a resolution placing Falcon Airlines Ltd in voluntary business rescue and appointed Ntando as the business rescue practitioner. Springbok Finance (Pty) Ltd believes that Falcon Airlines Ltd can be successfully rescued. However, Springbok Finance (Pty) Ltd is dissatisfied with the way Ntando is performing his duties as the business rescue practitioner, as he has failed to implement the approved business rescue plan.  Ntando has also not been preparing and submitting the required monthly reports, even though the business rescue proceedings have lasted longer than three months. Springbok Finance (Pty) Ltd wants to appoint Andile, an experienced business rescue practitioner in the airline industry, to replace Ntando as the business rescue practitioner of Falcon Airlines Ltd.  

Explain whether there are grounds to remove Ntando as the business rescue practitioner, and if so, whether Springbok Finance (Pty) Ltd may appoint Andile to replace Ntando as the business rescue practitioner of Falcon Airlines Ltd.  . (5)  

Total For Assignment 2: [20]

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