Companies and Other Business Structures in South Africa
LML4806 Assignment 2 COMPLETE ANSWERS) Semester 1 2024 - DUE April 2024 100% TRUSTED workings, explanations and solutions. for assistance
Question: 1
Coffee Bean Lovers (Pty) Ltd (‘the company’) buys coffee from Kenya and distributes it to different
coffee shops in South Africa. D...
Exam (elaborations) LML4806Assignment 1 (COMPLETE ANSWERS) Semester 1 2024 - DUE March 2024 • Course • ENG1501 - Foundations In English Literary Studies (LML4806) • Institution • University ...
LML4806 Assignment 02 2024 semester 01
LML4806 ASSIGNMENT 02 2024 SEMESTER 01
All for this textbook (11)
Written for
University of South Africa (Unisa)
LML4806 (LML4806)
All documents for this subject (62)
Seller
Follow
LETSCRACKTHEQUESTION
Reviews received
Content preview
LML4806 ASSIGNMENT 02 2024 SEMESTER 01
100% GUARANTEED ANSWERS
QUESTIONS AND ANSWERS INCLUDED
REFERENCE ALSO INCLUDED
, Question: 1
Coffee Bean Lovers (Pty) Ltd (‘the company’) buys coffee from Kenya and distributes it to
different coffee shops in South Africa. Due to an infestation of bugs at one of the coffee
plantations, the company will not be able to get deliveries of coffee from Kenya for the next
three months. Instead, .the company will have to import coffee from Uganda at a much
higher cost. As a result, the company’s cash flow will be affected severely. Pat, one of the
directors of Coffee Bean Lovers (Pty) Ltd, has informed Jane and Steven, two of the
employees of the company, that the company may face serious financial difficulties in the
next three to twelve months and that they will not be paid their salaries for the next two
months as the company will first have to pay other creditors. Jane and Steven have heard
about business rescue, and are of the view that business rescue
proceedings may be appropriate in the circumstances to assist the company to survive and
to ensure that they will still be paid their salaries. Jane and Steven approach you for advice
on business rescue proceedings. With reference to the relevant statutory provisions:
1.1 Explain what business rescue is and indicate the circumstances in which business
rescue proceedings may be used.
Section 128(1)(b) of the Companies Act 71 of 2008 defines business rescue as proceedings
to facilitate the rehabilitation of a financially distressed company by:The temporary
supervision of the company, and of the management of its affairs,business and property.
A temporary moratorium on the rights of claimants against the company or in respect of its
property in its possession.
The development and implementation, if approved, of a plan to rescue the company, or, if
not possible, a plan to achieve a better return for the company'screditors than the payment
they would have received if the company had been liquidated immediately.
D In terms of section 128(1)() of the Companies Act 71 of 2008 a company will be
financially distressed when:
• the company is reasonably unlikely to be able to pay all its debts as they become
due and payable within the next six months, or
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 LETSCRACKTHEQUESTION. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.59. You're not tied to anything after your purchase.
