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AUE1601 Assignment 2 2024 Semester 2

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  • September 19, 2024
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AUE1601
ASSIGNMENT 2 SEMESTER 2 2024
UNIQUE NO.
DUE DATE: 2024

, AUE601

Assignment 2 Semester 2 2024

Unique Number:

Due Date: 2024

Legal Aspects in Accountancy

QUESTION 1

PART 1

(a) Briefly explain the Companies Act requirements relating to the notice period
for the resignation of a company secretary.

The Companies Act 71 of 2008 (the Act) requires a company secretary to provide
written notice of their resignation to the board of directors. The Act does not specify a
minimum notice period, but the notice period may be governed by the terms of the
contract between the company and the secretary. Typically, the contract stipulates the
duration of notice, ensuring a smooth transition. In the absence of a contractual term,
reasonable notice is implied, depending on the circumstances.




(b) In terms of the Companies Act, discuss the eligibility of each of the listed
candidates for appointment as company secretary.

The Companies Act 71 of 2008 stipulates that a company secretary must have the
necessary knowledge, experience, and be a juristic person or individual who is not
disqualified by the Act.

Analysis of the eligibility of each candidate

1. Nylon (Pty) Ltd:
Eligible. The Act allows a juristic person like Nylon (Pty) Ltd to be appointed as a

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