100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
AUE1601 - Companies act Summary with Q&A $9.25   Add to cart

Summary

AUE1601 - Companies act Summary with Q&A

  • Course
  • Institution

This document pertains to a summary of the "Need to know" Companies Act Sections in order to pass this subject. The document also includes a few questions and answers to assist with the exam technique needed to answer the exam.

Preview 3 out of 28  pages

  • January 7, 2020
  • 28
  • 2019/2020
  • Summary

1  review

review-writer-avatar

By: dmahlabana • 4 year ago

avatar-seller

Available practice questions

Flashcards 8 Flashcards
$9.25 0 sales

Some examples from this set of practice questions

1.

List the requirements for the standards of director’s conduct in terms of the Companies Act.

Answer: In terms of section 76, a director of a company must not use the position of director, or any information obtained while acting in the capacity of a director (a) To gain an advantage for the director, or for another person other than the company or a wholly-owned subsidiary of the company; or (b) To knowingly cause harm to the company or a subsidiary of the company; and The director must communicate to the board at the earliest practicable opportunity any information that comes to the director’s attention, unless the director (a) Reasonably believes that the information is immaterial to the company; or (b) Generally available to the public, or known to the other directors; or (c) Is bound not to disclose that information by a legal or ethical obligation of confidentiality. A director of a company, when acting in that capacity, must exercise the powers and perform the functions of director (a) In good faith and for a proper purpose; (b) In the best interests of the company; and (c) With the degree of care, skill and diligence that may reasonably be expected of a person (i) Carrying out the same functions in relation to the company as those carried out by that director; and (ii) Having the general knowledge, skill and experience of that director.

2.

How do you calculate the public interest score?

Answer: CALCULATION OF PUBLIC INTEREST SCORE • 1 point for every one of the average number of employees employed during the year • 1 point for every R1 million (or portion thereof) in third party liability of the company at the financial year-end • 1 point for every R1 million (or portion thereof) in turnover during the financial year • 1 point for every individual who at the end of the financial year, is known by the company to directly or indirectly have a beneficial interest in the company’s issued securities

3.

Explain the Companies Act requirements concerning pre-incorporation contracts.

Answer: A person may enter into a written agreement in the name of or on behalf of, an entity that is contemplated to be incorporated, but does not yet exist at the time. A person who does anything as explained above, is jointly and severally liable with any other such person for liabilities created as provided for in the pre-incorporation contract while so acting, if (a) The contemplated entity is not subsequently incorporated; or (b) After being incorporated, the company rejects any part of such an agreement. If, after its incorporation, a company enters into an agreement on the same terms as, or in substitution for, an agreement contemplated above, the liability of the person in respect of the substituted agreement is discharged. Within three months after the date on which a company was incorporated the board of that company may completely, partially or conditionally ratify or reject any pre-incorporation contract purported to have been made in its name or on its behalf. If, within three months after the date on which a company was incorporated, the board has neither ratified nor rejected a particular pre-incorporation contract, the company will be regarded as having ratified that agreement. To the extent that a pre-incorporation contract has been ratified (a) The agreement is enforceable against the company as if the company had been a party to the agreement when it was made; and (b) The liability of a person who entered into the pre-incorporation contract in respect of the ratified agreement is discharged. If a company rejects the agreement before the incorporation of the company, a person who bears any liability for that rejected agreement may assert a claim against the company for any benefit it has received, or is entitled to receive, in terms of the agreement.

4.

Explain the duties of the audit committee in terms of the companies act

Answer: THE DUTIES OF THE AUDIT COMMITTEE IN TERMS OF THE COMPANIES ACT ARE TO  nominate a registered auditor for appointment as auditor by the shareholders (must be satisfied nominated person/firm is independent)  Determine the auditors’ fees and terms of engagement.  Ensure the appointment of the auditor complies with the Companies Act and the Auditing Profession Act.  determine the nature and extent of any non-audit services the auditor may provide to the entity; and  Pre-approve any agreement with the auditor for the provision of these services. Prepare a report to be included in the AFS which • describes how the audit committee carried out its function. • states whether the auditor was independent of the company. • Comments in any way the committee considers appropriate of the financial statements, the accounting practices and internal controls of the company. Receive and deal with appropriately, any concerns or complaints relating to • The accounting practices and internal audit of the company; • The content or audit of the AFS; • Internal financial controls; or • Any related matters. Make submissions to the board on any matters dealt with in (2.6) above. Perform other functions determined by the board.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller DanelDouglas97. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $9.25. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

89358 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$9.25  3x  sold
  • (1)
  Add to cart