100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
Previously searched by you
LML4806 ASSIGNMENT 1 MEMO - SEMESTER 1 - 2024 UNISA - DUE 15 MARCH 2024 (DETAILED ANSWERS WITH FOOTNOTES AND A BIBLIOGRAPHY - DISTINCTION GUARANTEED!)$4.39
Add to cart
LML4806 ASSIGNMENT 1 MEMO - SEMESTER 1 - 2024 UNISA - DUE 15 MARCH 2024 (DETAILED ANSWERS WITH FOOTNOTES AND A BIBLIOGRAPHY - DISTINCTION GUARANTEED!)
19 views 0 purchase
Course
Company Law (LML4806)
Institution
University Of South Africa (Unisa)
Book
The Law of Business Structures
LML4806 ASSIGNMENT 1 MEMO - SEMESTER 1 - 2024 UNISA - DUE 15 MARCH 2024 (DETAILED ANSWERS WITH FOOTNOTES AND A BIBLIOGRAPHY - DISTINCTION GUARANTEED!)
Question: 1
Mandla is both a director and shareholder of Cargo Logistics Ltd. He wants to buy more shares in Cargo Logistics Ltd but does not ...
Tutors you can trust. Voted “BEST
SELLING” memos for the year 2022/2023.
LML4806
COMPANY LAW
ASSIGNMENT 1 MEMO
SEMESTER 1 – 2024 - UNISA
UNIQUE NUMBER: - 784139
DUE DATE: - 15 MARCH 2024
Includes Footnotes and/or Bibliography.
ASSIGNMENT PREVIEW
SEE PAGE 1
Disclaimer
Extreme care has been used by our Tutors to draft this document, however the contents are provided “as is” without any representations
or warranties, express or implied. This document is to be used for comparison, research and reference purposes ONLY. No part of this
document may be reproduced, resold or transmitted in any form or by any means without prior written permission from the Author. –
LLB EXAMPACKS & TUTORIALS.
Mandla is both a director and shareholder of Cargo Logistics Ltd. He wants to buy
more shares in Cargo Logistics Ltd but does not have enough money to do so. He
offers to rent out a warehouse to Cargo Logistics Ltd. Cargo Logistics Ltd agrees
to pay R1.2 million per annum as rent for the warehouse. Mandla then uses part of
the money to purchase 10 000 shares in Cargo Logistics Ltd. With reference to the
relevant case law, statutory provisions and the facts provided in the above
scenario, discuss whether Cargo Logistics Ltd has provided financial assistance
for the purchase of its securities.
In the scenario described, the transaction involving Mandla, Cargo Logistics Ltd,
and the rental of a warehouse raises questions about whether Cargo Logistics Ltd
has provided financial assistance for the purchase of its securities. The issue
revolves around the concept of financial assistance, particularly in the context of
share acquisitions.
The Companies Act, statutory provisions, and relevant case law come into play.
1. Companies Act Provisions: -
Section 44(2): This section prohibits a company from providing financial assistance
for the purpose of or in connection with the purchase of its own shares, or the shares
of its holding company.1
1
Companies Act 71 of 2008.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LLBExampacksAndTutorials. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.39. You're not tied to anything after your purchase.
