LML4806- Company Law Past EXAM QUESTIONS WITH VERIFIED AN
LML4806 - Company Law
100 % ANSWERS (DETAILED AND ELABORATED) A+ GRADED
Study online at https://quizlet.com/_hfn7og
1. What info must - any proposals made "informally" by a company creditor
be contained in a - details of all assets and creditors
compromise pro- - treatment of ongoing contracts
posal? - order of preference, proceeds apply
- conditions precedent
- number of employees
- t&c of employment
- projected balance sheet
- income and expenses for 3 years
- certificate by authorized director stating info is factual, accurate, up to date
2. When will com- - S155(6) adopted if supported by a majority in number representing at least 75%
promise be in value of creditors
adopted and - A company may apply to court for an order approving the proposal
binding - suggests it is not necessary for a company to obtain sanction of High Court before
a compromise becomes binding on dissenting creditors
3. Record date - determines certain rights of shareholders
- S59(1) a company may set a record date for purpose of determining which
shareholders are entitled to receive the notice, vote etc
- latest date by which the company is required to give notice to SH of the meeting,
or date of action or event
- board fail to set date, date is last day on which notice should be given to SH of
SH meeting (public = 15 bdays; private = 10 bdays)
4. Compromise - agreement or arrangement or restructuring of claims between a company and its
creditors in terms of which the creditors agree to accept less than their full claims
against the company
- binding on all companies creditors
5.
1/9
, LML4806 - Company Law
Study online at https://quizlet.com/_hfn7og
Compromise pro- - background
posal is divided - the proposal itself
into three parts - assumptions and conditions
6. How is proposal - by delivery of a copy of the proposal
of compromise ef- - and notice of a meeting to consider the proposal to the Companies Commission
fected? and to every creditor of the company or every member of the relevant class of
creditors whose name and address is known or can reasonable be obtained by
the company
7. When is com- - when supported by a majority in number
promise proposal - representing at least 75% in value of creditors present & voting (or proxy)
adopted
8. If a compromise - company must file a copy of the order with Companies Commission within 5
is approved by business days
court? - copy must be attache to each copy of Company MOI
- order of court is final and binding on all creditors or class of creditors from the
date on which a copy of the order is filed
9. Company Secre- - public & state owned company are obliged to appoint one
tary - company must maintain record of company secretaries
- secretary is chief administration officer
- should be someone with knowledge of and experience in relevant legislation
- accountable to board of directors
- duties - guide directors on duties; powers & responsibilities; make directors aware
of law
- board may adopt a resolution to remove company secretary
10. How do you hold PROXY
a SH meeting w/o - S58
everyone present - appointment must be in writing & signed
- speak & vote on behalf of SH
2/9
LML4806 - Company Law
100 % ANSWERS (DETAILED AND ELABORATED) A+ GRADED
Study online at https://quizlet.com/_hfn7og
1. What info must - any proposals made "informally" by a company creditor
be contained in a - details of all assets and creditors
compromise pro- - treatment of ongoing contracts
posal? - order of preference, proceeds apply
- conditions precedent
- number of employees
- t&c of employment
- projected balance sheet
- income and expenses for 3 years
- certificate by authorized director stating info is factual, accurate, up to date
2. When will com- - S155(6) adopted if supported by a majority in number representing at least 75%
promise be in value of creditors
adopted and - A company may apply to court for an order approving the proposal
binding - suggests it is not necessary for a company to obtain sanction of High Court before
a compromise becomes binding on dissenting creditors
3. Record date - determines certain rights of shareholders
- S59(1) a company may set a record date for purpose of determining which
shareholders are entitled to receive the notice, vote etc
- latest date by which the company is required to give notice to SH of the meeting,
or date of action or event
- board fail to set date, date is last day on which notice should be given to SH of
SH meeting (public = 15 bdays; private = 10 bdays)
4. Compromise - agreement or arrangement or restructuring of claims between a company and its
creditors in terms of which the creditors agree to accept less than their full claims
against the company
- binding on all companies creditors
5.
1/9
, LML4806 - Company Law
Study online at https://quizlet.com/_hfn7og
Compromise pro- - background
posal is divided - the proposal itself
into three parts - assumptions and conditions
6. How is proposal - by delivery of a copy of the proposal
of compromise ef- - and notice of a meeting to consider the proposal to the Companies Commission
fected? and to every creditor of the company or every member of the relevant class of
creditors whose name and address is known or can reasonable be obtained by
the company
7. When is com- - when supported by a majority in number
promise proposal - representing at least 75% in value of creditors present & voting (or proxy)
adopted
8. If a compromise - company must file a copy of the order with Companies Commission within 5
is approved by business days
court? - copy must be attache to each copy of Company MOI
- order of court is final and binding on all creditors or class of creditors from the
date on which a copy of the order is filed
9. Company Secre- - public & state owned company are obliged to appoint one
tary - company must maintain record of company secretaries
- secretary is chief administration officer
- should be someone with knowledge of and experience in relevant legislation
- accountable to board of directors
- duties - guide directors on duties; powers & responsibilities; make directors aware
of law
- board may adopt a resolution to remove company secretary
10. How do you hold PROXY
a SH meeting w/o - S58
everyone present - appointment must be in writing & signed
- speak & vote on behalf of SH
2/9
