QUESTION ONE $[40]$

XYZ Innovations $($Pty$)$ Ltd$.$ is a tech startup founded by John and Sarah, who are childhood friends. The company specializes in developing cutting$-$edge software solutions for various industries. Over the years, the company has grown rapidly and attracted investors due to its innovative products. However, recently, XYZ Innovations $($Pty$)$ Ltd$.$ has been facing financial difficulties, and there have been disagreements between the founders regarding the company's future.

$1\mathrm{.}1$

Assess how the Companies Act $71$ of $2008$ shaped the landscape of corporate governance and business practices in South Africa since its enactment, and what the driving forces behind its implementation were. $(10)$

$1\mathrm{.}2$

Write a short note identifying the type of company XYZ $($Pty$)$ Ltd is and set out $4($four$)$ characteristics that are specific to this type of company. $(10)$

$1\mathrm{.}3$

Given the company's financial difficulties, John and Sarah are concerned about their personal liability. They want to understand how limited liability and the concept of separate legal personality, as provided by the Companies Act $71$ of $2008$ operate. $(10)$

$1\mathrm{.}4$

Assess whether John and Sarah$$s personal assets are at risk due to the company's financial troubles and if they can be held personally liable for its debts. $(10)$