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MCL5903 Assignment 2 Semester 2 Memo | Due 5 September 2025. All questions fully answered. The Companies and Intellectual Property Commission (‘the Commission’) removes the name
of Sand-Ton Computer Systems (Pty) Ltd (‘Sand-Ton’) from the registry of companies.
According to the Commission, Sand-Ton has failed to file its annual financial returns for two
consecutive years, as it is required in terms of section 33 of the Companies Act 71 of 2008 (‘the
Companies Act’). Following the removal of its name from the registry, Sand-Ton receives a
government contract from the Department of Education (‘the Department’), to supply
computers for the rural schools based in KwaZulu-Natal. While executing on its contract,
Sand-Ton is reinstated to the register administered by the Commission. Upon completion of its
task in terms of the agreement, the Department declines to pay for its obligations to Sand-Ton.
The reason offered by the Department is that Sand-Ton was never a corporate entity at the time
of the conclusion of the contract, which according to the Department, renders the contract
invalid. With reference to the relevant provisions of the Companies Act 71 of 2008, prescribed
case law and prescribed journal article; provide a critical discussion of the status of the contract
entered into between Sand-Ton and the Department. In your discussion, consider whether the
Companies Act has adequately addressed the status of contracts (or proceedings) entered into
while the company was deregistered.
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