QUESTION TWO

$30$

$2\mathrm{.}1$ Explain the doctrine of constructive and its applicability under South African

commercial lew. Your response should make reference to Section $19$ of the Companies Act

$71$ of $2008.$

$2\mathrm{.}2$ Explain the Turquand Rule and its significance in company law. Discuss the case of

Royal Britich Bank y Turquand $(1856)6.$E&B $327$ outlining the facts, legal principles, and

the court's decision. Analyse how the Turquand Rule protects third parties dealing with

companies and evaluate its application under the Companies Act $71$ of $2008.$

$(15)$