LML4806 COMPANY LAW EXAM STUDY GUIDE
1. Types and Forms of Companies
Answer 1. Profit Company
2. Non - profit company
2. Profit companies 4 types
Answer 1. Sate owned
- schedule 2/3 of PFMA
-Municipality
- National government business
2. Public
- can sell shares to public & freely
transferable -Can be listed on JSE
3. Personal
- Professional association e.g Attorneys
- Directer jointly and severely liable
4. Private
- Cant sell shares to public MOI
forbids it. - Not freely
transferable - Fudtrust matter.
, LML4806 COMPANY LAW EXAM STUDY GUIDE
3. Section 66
Answer Board, directors and prescribed officers: - S 66(1): business of a company must be
managed by or under direction of its board
- directors have a duty to manage the company but shareholders retain control over the
directors by their power to appoint and remove directors
- before certain transactions can take place, such transactions must be approved by
shareholders, either by way of special or ordinary resolution
- a company's own MOI can restrict the powers of directors or others to act i.r.o a
particular matter
- MOI can provide that certain transactions have to be pre-approved by shareholders
- shareholder: holder of share issued by a company and who is entered as such in the
certificated or uncertificated securities register of the company
- for purposes of part F of Ch 2 person who is entitled to exercise any voting rights in
relation to a company, irrespective of the form, title or nature of the securities to which
those voting rights are attached - share: one of the units into which the proprietary
interest in a profit company is divided
shareholders meeting: meeting of those holders of a company's issued securities who
are entitled to exercise voting
rights in relation to that matter
4. Important principles
Answer - meeting must be properly called and convened
- properly convened if the prescribed notice for convening the meeting was given by
authorised
- notice must be given to all persons who are entitled
1. Types and Forms of Companies
Answer 1. Profit Company
2. Non - profit company
2. Profit companies 4 types
Answer 1. Sate owned
- schedule 2/3 of PFMA
-Municipality
- National government business
2. Public
- can sell shares to public & freely
transferable -Can be listed on JSE
3. Personal
- Professional association e.g Attorneys
- Directer jointly and severely liable
4. Private
- Cant sell shares to public MOI
forbids it. - Not freely
transferable - Fudtrust matter.
, LML4806 COMPANY LAW EXAM STUDY GUIDE
3. Section 66
Answer Board, directors and prescribed officers: - S 66(1): business of a company must be
managed by or under direction of its board
- directors have a duty to manage the company but shareholders retain control over the
directors by their power to appoint and remove directors
- before certain transactions can take place, such transactions must be approved by
shareholders, either by way of special or ordinary resolution
- a company's own MOI can restrict the powers of directors or others to act i.r.o a
particular matter
- MOI can provide that certain transactions have to be pre-approved by shareholders
- shareholder: holder of share issued by a company and who is entered as such in the
certificated or uncertificated securities register of the company
- for purposes of part F of Ch 2 person who is entitled to exercise any voting rights in
relation to a company, irrespective of the form, title or nature of the securities to which
those voting rights are attached - share: one of the units into which the proprietary
interest in a profit company is divided
shareholders meeting: meeting of those holders of a company's issued securities who
are entitled to exercise voting
rights in relation to that matter
4. Important principles
Answer - meeting must be properly called and convened
- properly convened if the prescribed notice for convening the meeting was given by
authorised
- notice must be given to all persons who are entitled
