QUESTION $2$

$(20$ Marks$)$

Bear Hugs is a non$-$profit organisation. Their primary purpose for incorporation was for the assistance of children with disabilities. They have realised that many parents of these children are willing to buy prosthetics, which is appearing to be a more lucrative opportunity for them in respect to profits. The shareholders wish to use their company "Bear Hugs" to solely produce prosthetics.

$2\mathrm{.}1.$ Explain in detail to the shareholders the purpose of non$-$profit companies and if they are

$(10)$ allowed to pursue this new idea of theirs. Also, explain the winding up and dissolution of non$-$

profit companies.

$2\mathrm{.}2$ Give the definition of a domesticated company and explain when a foreign company is

$(10)$

prohibited from transferring its registration to South Africa

QUESTION $3$

$(10$ Marks$)$

$3\mathrm{.}1$ Explain the doctrine of constructive notice

$(10)$