MRL2601/01/2022

Assignment 2 2022

ENTREPRENEURIAL LAW
MRL2601

Semester 1

Department of Mercantile Law

 CONTENTS
Page

1 INSTRUCTIONS ON COMPLETING THE ASSIGNMENT QUESTIONS ...................................... 3

2 Assignment due date .................................................................................................................... 3
3 Assignment 2 ................................................................................................................................ 4

2
 MRL2601/101/3/2021

Dear Student

1 INSTRUCTIONS ON COMPLETING THE ASSIGNMENT QUESTIONS

There are TWO assignments in this module. Both assignments are compulsory. Both Assignments
01 and 02 contribute to your year mark. Remember that your assignment must be numbered number 01
or 02.

You should also provide the unique number for Assignment 01 and Assignment 02. State the
module code and assignment number in all enquiries about assignments.

If you do not submit both Assignment 01 and Assignment 02 before the relevant date, your
registration will be cancelled, and you will not be admitted to the examination in MRL2601.

No extension: No extension for submission of the assignment will be granted under any
circumstances. Assignments received after the due date will be returned unmarked.

Please read this information very carefully before you start with the assignment.

• Assignment 02 is a written assignment consisting of longer type questions. The assignment

counts a total of 10 marks.
• Neatness is essential. Plan your answers in advance.
• Assignment 02 contains the type of longer questions that you can expect in the examination. It
also deals with the work that you are going to be examined on, ie companies and close
corporations. You should try to answer them under examination conditions. Had the assignment
been examination questions together counting 10 marks, you would have been given 20 minutes
to complete them. This means that you cannot write an answer that is several pages long for a 5-
mark question.
• Please ensure that you submit the correct assignment to be marked.

2 Assignment due date

The closing date for the submission of the assignment is:

Assignment number Closing date

Assignment 02: 12 April 2022

3
3 Assignment 2

QUESTION 1

Zingapi is a minority shareholder in Telemark (Pty) Ltd. In spite of good business the company’s profits
are not increasing. Zingapi suspects that the directors, who are also majority shareholders are wasting
the company’s money on unnecessary business trips and luxuries for themselves. Zingapi is concerned
about the costs that she would incur in a court action. Advise her of the steps she should take in order to
institute a derivative action on behalf of Telemark (Pty) Ltd. (5)

QUESTION 2
Puseletso has recently bought the member’s interest in Gangnam’s Tile CC. She is experiencing
financial problems, and it appears that her estate will be sequestrated. The other members of
Gangnam’s Tile CC, who are aware of the situation, are concerned about what effect the sequestration
of Puseletso’s estate will have on the continued existence of Gangnam’s Tile CC. With reference to the
Close Corporations Act 69 of 1984 explain whether the continuation of the business will be affected by
the sequestration of Puseletso’s estate and what happens to the member’s interest of a member of a
close corporation when she is sequestrated. (5)

TOTAL: 10 marks