lOMoARcPSD|30196582

LWCL211 Deferred Test 2016

Corporate Law (Eduvos)

Scan to open on Studocu

Studocu is not sponsored or endorsed by any college or university

Downloaded by Biggo Bozi (biggobozi@gmail.com)
 lOMoARcPSD|30196582

FACULTY OF LAW

CORPORATE LAW

LWCL211

DEFERRED TEST – MAY 2016

INTERNAL EXAMINER: Susan de Kock

TOTAL MARKS: 45
DURATION: 1.5 Hours

SECTION A: Short Questions 25 Marks

SECTION B: Discussion Questions 20 Marks

INSTRUCTIONS TO CANDIDATES:
1. Read each question carefully.
2. You must answer ALL sections.
3. Answer all questions in the answer book provided.
4. All rough work should be done in the back of the answer book and indicated as such.
5. This test paper should not be removed from the venue.

NB This test paper consists of 4 pages

This test contributes 25% towards the final mark.

DEFERRED TEST May 2016 LWCL211 Page 1 of 4

Downloaded by Biggo Bozi (biggobozi@gmail.com)

 lOMoARcPSD|30196582

Section A

Short Questions 25 Marks

Answer the following questions in your answer book.

QUESTION ONE
Explain the term “ex officio director”. [2]

QUESTION TWO
Answer true or false to the following questions and explain your answer if you select
false:
2.1 A partnership is an agreement between two or twenty persons in terms of which
they contribute to a joint fund with the object of making a profit.
2.2 A charitable organisation may be a company, close corporation or a partnership.
2.3 Partners are the co-owners of the assets of the partnership – they hold the assets
jointly in equal undivided shares.
2.4 The actio communio dividundo is the general partnership action with which
partners can enforce their mutual obligations.
2.5 Where the partnership falsely creates the impression that a person has the
authority to act on behalf of the partnership, the third party cannot hold the
partnership to the impression.
2.6 Where there is a shortfall in the partnership estate after partnership assets have
been liquidated, partners do not have to contribute to make good the shortfall as
the partnership has been liquidated.
2.7 An individual partner cannot be sued for a partnership debt while the partnership
is in existence.
[12]

DEFERRED TEST May 2016 LWCL211 Page 2 of 4

Downloaded by Biggo Bozi (biggobozi@gmail.com)

 lOMoARcPSD|30196582

QUESTION THREE
The board of directors of SnoooozeUs (Pty) Ltd issued a notice for a shareholders
meeting to be held on 30 May 2016 to their shareholders via sms. Zoe, a shareholder
of SnoooozeUs (Pty) Ltd received the sms on 20 May 2016. The sms indicated that
shareholders are required to attend the meeting at 10am on 30 May 2016 but
contained no other details.

Zoe maintains that she was not given proper notice. Discuss whether or not she is
correct? [6]

QUESTION FOUR
List five (5) circumstances under which a vacancy on the board of directors will
arise. [5]

SUBTOTAL: [25]

DEFERRED TEST May 2016 LWCL211 Page 3 of 4

Downloaded by Biggo Bozi (biggobozi@gmail.com)

 lOMoARcPSD|30196582

Section B

Discussion Questions 20 Marks

Answer the following questions in your answer book.

QUESTION ONE
Zandile enters into an agreement to buy computers from Computers4U CC for a
company that is going to be formed in the future, namely Future (Pty) Limited. Four
months after incorporation of Future (Pty) Limited, the company receives an invoice
from Computers4U and refuses to pay for the computers as the contract was entered
into before Future (Pty) Limited was incorporated.

Advise Computers4U on the correct legal position. [10]

QUESTION TWO
Tebogo, a director of Flashycashy (Pty) Ltd, wants to buy a new car but he does not
have a deposit. The board of Flashycashy (Pty) Ltd passes a resolution in which it
agrees to assist him by giving him a loan for the deposit as Tebogo is a hard working
director of the company. Flashycashy (Pty) Ltd is unable to pay its creditors and is not
profitable at the time that the loan is given. Discuss whether or not the loan given to
Tebogo is valid? [10]

SUBTOTAL: [20]

TOTAL: [45]

DEFERRED TEST May 2016 LWCL211 Page 4 of 4

Downloaded by Biggo Bozi (biggobozi@gmail.com)