LML4806 Assignment 1Semester 1 2026 – DUE MARCH 2026 [complete answers]

Description

LML4806 Assignment 1Semester 1 2026 – DUE 2026 [complete answers] Question 1 Multicuisine Ltd wishes to sell shares to a newly incorporated company called Multicuisine Ramatla (RF) Ltd to enable Multicuisine Ltd to comply with Broad-Based Black Economic Empowerment (BBBEE) legislation in South Africa. Multicuisine Ramatla (RF) Ltd does not have the money to pay for the shares. Multicuisine Ltd provides a loan of R85 million to Multicnisine Ramatla (RF) Ltd, and Multicuisine Ramatla (RF) Ltd uses the loan to purchase 850 000 ordinary shares in Multicuisine Ltd. This loan is to be repaid over a period of 10 years by using the dividends declared by Multicuisine Ltd. With reference to the Companies Act 71 of 2008 and appropriate authority, indicate the type of company that Multicuisine Ramatla (RE) Ltd falls under and discuss in detail whether Multicnisine Ltd has provided financial assistance for the purchase of its securities.