QUESTION ONE

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.

$1\mathrm{.}2$ 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.

$1\mathrm{.}3$ 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.

$1\mathrm{.}4$ 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.

QUESTION TWO

Consider the topics below and provide a detailed response.

$2\mathrm{.}1$ RIGHTS OF A SURETY

To answer this question, you must ensure that you have an understanding of what a

suretyship agreement is and who the parties involved are.

Provide a detailed explanation of each of the $5$ rights that a surety has.