Name: LML4806 Assignment 2 Semester 2 Memo | Due September 2025 - StudyPass
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LML4806 Assignment 2 Semester 2 Memo | Due September 2025. All questions fully answered. Question 1
Skylab (Pty) Ltd wishes to have a database designed and installed that will receive, process and store
information generated by the work done in its laboratory. It wants to appoint a service provider to
design and install this system, and also wants the service provider to maintain the database for the next
ten years. Internet World (Pty) Ltd is keen to conclude this contract with Skylab (Pty) Ltd as it is a
very profitable contract. It appoints Lerato, one of its directors, to enter into negotiations with Skylab
(Pty) Ltd for this purpose. After a few weeks of negotiations, Skylab (Pty) Ltd decides that it does not
want to conclude the contract with Internet (Pty) Ltd but wishes to enter into the contract with Lerato
in her personal capacity. It offers the contract to Lerato personally. Lerato subsequently resigns as a
director of Internet World (Pty) Ltd and informs the 4 company that she wishes to take early retirement
and travel the world before she gets too old. Internet World (Pty) Ltd appoints Themba to continue the
negotiations with Skylab (Pty) Ltd in place of Lerato. When Themba tries to arrange a meeting with
Skylab (Pty) Ltd for this purpose, he is informed by Skylab (Pty) Ltd that it had already concluded a
contract with Lerato in her personal capacity for the design and installation of the database, and that
Lerato had recently commenced working on the database. Internet World (Pty) Ltd wishes to pursue
legal action against Lerato for a breach of her fiduciary duties. Lerato argues that she signed the
contract with Skylab (Pty) Ltd only after she had resigned from Internet World (Pty) Ltd and that she
had therefore not breached her fiduciary duties to Internet World (Pty) Ltd.
1. With reference to the Companies Act 71 of 2008, relevant case law and the facts provided,
discuss whether Lerato has breached any specific fiduciary duties she owed to Internet World
(Pty) Ltd. Also consider the validity of Lerato’s argument that she did not breach her fiduciary
duties to Internet World (Pty) Ltd since she signed the contract with Skylab (Pty) Ltd only after
she had resigned from Internet World (Pty) Ltd.
Question 2
2. Boaz is a business rescue practitioner of a company that is under business rescue. Due to
complications in the company, Boaz applied to court to extend the duration of the business
rescue proceedings for two additional months. The additional two months have lapsed and the
business rescue proceedings have not ended. Boaz wants the business rescue proceedings to
continue as the company is slowly recovering from its financial distress. With reference to the
relevant provisions of the Companies Act 71 of 2008, advise Boaz on what he should do under
these circumstances.