(a) The members of Anchor (Pty) Limited are dissatisfied with the manner in which the affairs...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
(a) The members of Anchor (Pty) Limited are dissatisfied with the manner in which the affairs of the company are being conducted by the directors. Two directors are therefore removed from office. The directors maintain that their removal is invalid, since the Articles provide that directors hold office for a period of five years and they were removed after expiration of a period of only two years. They also contend that the appointment of the new directors is invalid, since requirements of section 211 of the Companies Act were not complied with. These two directors approach you for legal advice. Advise them on: i. The procedures and requirements applicable to the removal of directors and the methods by which a director can seek to ensure that he or she will not be removed from office. (8) ii. Whether they have a claim for damages against the company in respect of their premature dismissal and whether they can prevent their removal and compel the company to restore them to their office. (4) South African Corporate Law / ⒸICG / Page 41 Whether a claim for damages can be avoided if the Articles are amended by the company. Discuss the requirements for an alteration of the Articles. (10) iv. The procedures and requirements applicable to the appointment of new directors and the consequences if these requirements are not complied with. (10) (b) Write a short note on the fiduciary duty of directors to avoid a conflict of interest, paying special attention to the situation where a director contracts with his or her company. (12) 1441 (a) The members of Anchor (Pty) Limited are dissatisfied with the manner in which the affairs of the company are being conducted by the directors. Two directors are therefore removed from office. The directors maintain that their removal is invalid, since the Articles provide that directors hold office for a period of five years and they were removed after expiration of a period of only two years. They also contend that the appointment of the new directors is invalid, since requirements of section 211 of the Companies Act were not complied with. These two directors approach you for legal advice. Advise them on: i. The procedures and requirements applicable to the removal of directors and the methods by which a director can seek to ensure that he or she will not be removed from office. (8) ii. Whether they have a claim for damages against the company in respect of their premature dismissal and whether they can prevent their removal and compel the company to restore them to their office. (4) South African Corporate Law / ⒸICG / Page 41 Whether a claim for damages can be avoided if the Articles are amended by the company. Discuss the requirements for an alteration of the Articles. (10) iv. The procedures and requirements applicable to the appointment of new directors and the consequences if these requirements are not complied with. (10) (b) Write a short note on the fiduciary duty of directors to avoid a conflict of interest, paying special attention to the situation where a director contracts with his or her company. (12) 1441
Expert Answer:
Answer rating: 100% (QA)
a i The procedures for the removal of a director are set out in section 168 of the Companies Act A director may be removed from office by a resolution ... View the full answer
Related Book For
Business
ISBN: 978-0133354263
8th Canadian Edition
Authors: Ricky Griffin, Ronald J.Ebert , Frederick Starke, Melanie Lang, George Dracopoulos
Posted Date:
Students also viewed these accounting questions
-
For a period of five years, physicians at McGill University Health Center followed more than 5000 adults over the age of 50. The researchers were investigating whether people taking a certain class...
-
Two new drugs are being tested for their effect on the number of days a patient must remain hospitalized after surgery. A control group is receiving a placebo, and two treatment groups are each...
-
Are the union members you spoke with satisfied or dissatisfied with their unions efforts to achieve better working conditions, higher wages, and improved benefits?
-
Matlab Program Develop a natural sine table with rows and columsn ranging as shown below, for a total of 121 data. Store the results in a variable named nsinet. Hints to simplify your work: The sine...
-
A proton is accelerated to 12.6 MeV per particle. What is this energy in kJ/mol?
-
Imagine that, given your current age and marital status, you have decided to make the maximum contribution to an individual retirement arrangement (IRA) each year from now until age 65. (Assume that...
-
Explain with the help of neat sketches, the working principle of four stroke petrol engine.
-
Michael and Mary Mason sold for $380,000 in November of 2012 their residence that they had purchased in 2002 for $75,000. They made major capital improvements during their 10-year ownership totaling...
-
You decide to take your car on a drive through Canada, where gas is sold in liters and distances are measured in kilometers. Suppose your car's gas efficiency is 24.82 mi/gal . How many liters of gad...
-
Barbour Corporation, located in Buffalo, New York, is a retailer of high-tech products and is known for its excellent quality and innovation. Recently, the firm conducted a relevant cost analysis of...
-
Laramie Technologies had the below data: cost of materials used 50,000 direct labor costs 56,000 factory overhead 28,000 work in process, beg. 31,000 work in process, finished 22,000 Determine the...
-
Briefly describe the five major transformations affecting the global economic environment since the Second World War. What is the one common theme that features among the changes?
-
Have you heard of the Cheetah generation? Heres a hint: Its the opposite of the Hippo generation. As you might infer, we are talking about Africa, a continent with 54 countries and a population of...
-
Discuss the driving and restraining forces affecting global integration today.
-
Identify and briefly describe some of the restraining forces that impede the growth of global marketing.
-
Mechanistic and bureaucratic structures can offer big advantages. What are they?
-
Concept testing is defined as a research method that involves asking customers questions about your concepts and ideas for a product or service before actually launching it. Thus, you can gauge your...
-
Using the theoretical sampling strategy, how many samples of size 4 (n = 4) can be drawn from a population of size: (a) N = 5? (b) N = 8? (c) N = 16? (d) N = 50?
-
What has been the experience of the European Union to date with emissions trading?
-
How do you think the power content of speech affects a managers ability to communicate? Evaluate some of the ways in which effects may differ among supervisors, peers, and subordinates.
-
If Microsoft had won its appeal, do you think that would have reduced the motivation to develop innovative new ideas? Defend your reasoning.
-
When managers use offers of rewards and threats of punishments to try to get others to do what they want them to do, they are using which type of power? (a) formal authority (b) position (c) referent...
-
In the research on leader behaviors, which style of leadership describes the preferred high-high combination? (a) transformational (b) transactional (c) laissez-faire (d) democratic
-
How is a person with an authoritarian personality expected to act? (a) Strong tendency to obey orders. (b) Challenges the authority of others. (c) Tries to play down status differences. (d) Always...
Study smarter with the SolutionInn App