Post on 26-Dec-2015
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Contractual Capacity of
Business Entities
Introduction
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• Name
• Position
• Experience with regard to Credit
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1. Analyse the Rules Pertaining to a Company
2. Analyse the Rules Pertaining to a Close Corporation
3. Analyse the Rules Pertaining to a Co-operative
4. Analyse the Rules Pertaining to a Trust
5. Analyse the Rules Pertaining to an Informal and a Governing Body
Learning Outcomes
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Learning Objectives
1. Analysing the Rules Pertaining to a Company by:• Comprehending the legal nature of a Company• Interpreting the formation of a Company• Comprehending the types of Companies• Comprehending Company communication,
officers and capital• Interpreting the advantages and disadvantages
of a Company• Examining accounting and taxation
requirements of a Company• Examining the limitations of the Act and the
Banking requirements of a Company
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Learning Objectives (Continued)
2. Analysing the Rules Pertaining to a Close Corporation by:• Comprehending the legal nature of a Close
Corporation• Interpreting the formation, membership and
capital of a Close Corporation• Interpreting the advantages and disadvantages
of a Close Corporation• Examining accounting and taxation
requirements of a Close Corporation• Examining the limitations of the Close
Corporations Act and the Banking requirements of a Close Corporation
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Learning Objectives (Continued)
3. Analysing the Rules Pertaining to a Co-operative by:• Comprehending the legal nature of a Co-
operative• Interpreting the formation, membership and
capital of a Co-operative• Interpreting the advantages and disadvantages
of a Co-operative• Examining accounting and taxation
requirements of a Co-operative• Examining the limitations of the Co-operatives
Act and the Banking requirements of a Co-operative
Learning Objectives (Continued)
4. Analysing the Rules Pertaining to a Trust by:• Comprehending the legal nature of a Trust• Interpreting the formation, documentation and
membership of a Trust• Interpreting the advantages and disadvantages
of a Trust• Examining accounting and taxation
requirements of a Trust• Examining the Banking requirements of a Trust
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Learning Objectives (Continued)
5. Analysing the Rules Pertaining to an Informal and a Governing Body by:• Comprehending the types of Informal Bodies• Examining the Banking requirements of an
Informal Body• Examining the Banking requirements of a
Governing Body of a Sectional Title
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Criteria
1. Analyse the Rules Pertaining to a Company
• Define a Company• Describe a Company as a legal entity• Describe the formation of a Company• Define the Memorandum of Association• List the contents of the Memorandum of
Association• Define the Articles of Association• List the contents of the Articles of Association• Define share capital
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Criteria (Continued)
3. Analyse the Rules Pertaining to a Company
• Differentiate between a Public Company with share capital and a Private Company with share capital
• List the criteria for a Company Limited by Guarantee
• List the criteria for a Section 21 Company
• List the responsibilities of a Company Secretary
• Define the role of a Director of a Company
• List the obligations of a Director of a Company
• List the individuals who may not be appointed as a Director of a Company
• Describe the capital of a Private Company
• Describe the capital of a Public Company
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Criteria (Continued)
1. Analyse the Rules Pertaining to a Company• List the advantages of a Company• List the disadvantages of a Company• List the contents of the annual financial statements of a
Company• Describe the taxation of a Company• Describe the liability of the members of a Company • Describe the powers of a Company if they have accepted
Section 34 and Schedule 2 of the Act without amendments
• Describe the relationship between:• A Holding Company• A Subsidiary Company• A Co-subsidiary• A Sub-subsidiary
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Criteria (Continued)
1. Analyse the Rules Pertaining to a Company
• Describe Section 37 of the Act
• Describe the prohibition of Section 38 of the Act
• List the implications of Section 38 for the Bank
• Describe the purpose of Section 226 of the Act
• List the transactions which are in terms of Section 226 of the Act:
• Absolutely prohibited
• Conditionally permissible
• Unconditionally permissible
• Judge the contractual capacity of a Company
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Criteria (Continued)
2. Analyse the Rules Pertaining to a Close Corporation• Define a Close Corporation• Describe a Close Corporation as a legal entity• Describe the winding-up of a Close Corporation in terms
of Sections 68 and 69 of the Act• List the registration requirements of a Close Corporation• List the contents of the Founding Statement of the
Corporation• List the requirements of the members of a Close
Corporation• Describe the liability of the members of a Close
Corporation• List the individuals who may not participate in the
management of a Close Corporation• Describe the capital of a Close Corporation
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Criteria (Continued)
2. Analyse the Rules Pertaining to a Close Corporation• List the advantages of a Close Corporation• List the disadvantages of a Close Corporation• List the records and registers to be kept and maintained
by a Close Corporation• Describe the taxation of a Close Corporation• Describe the limitations of the Close Corporations Act
with regard to:• Section 40• Section 52• Section 55
• Judge the contractual capacity of a Close Corporation
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Criteria (Continued)
2. Analyse the Rules Pertaining to a Co-operative• Define a Co-operative• Describe a Co-operative as a legal entity• Describe the winding-up of a Co-operative• Describe the formation of a Co-operative• Differentiate between the membership of the
three types of Co-operatives• Describe the liability of the members of a Co-
operative• List the advantages of a Co-operative
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Criteria (Continued)
3. Analyse the Rules Pertaining to a Co-operative
• List the records and registers to be kept and maintained by a Co-operative
• Describe the taxation of a Co-operative
• Describe the liability of the members of a Co-operative
• Describe the limitations of the Co-operatives Act with regard to:
• Section 49
• Section 52
• Section 53
• Judge the contractual capacity of a Co-operative
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Criteria (Continued)
4. Analyse the Rules Pertaining to a Trust• Define a Trust• Describe a Trust as a legal entity• List the requirements for a valid trust• Describe the Trust Instrument• Describe the parties and their respective roles
in a Trust• List the two main types of Trusts• Define a Business Trust
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Criteria (Continued)
1. Analyse the Rules Pertaining to a Trust• List the advantages of a Trust• List the disadvantages of a Trust• List the accounting records to be kept by a
Trust• Describe the taxation of a Trust• Describe the liability of the members of a Trust• Judge the contractual capacity of a Trust
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Criteria (Continued)
5. Analyse the Rules Pertaining to an Informal and a Governing Body• Define an Informal Body• List the types of Informal Bodies• Describe the contractual capacity of an
Informal Body• Define a Governing Body of a Sectional Title• Describe the Contractual Capacity of a
Governing Body
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AssessmentAssessment Type & Definition
Formative Assessment:
These assessments will include the assessment of some aspects/ components of a learning process and are linked to specific learning outcomes. It will also include feedback to the learner in preparation for a summative assessment.
Summative Assessment:
This assessment will incorporate the assessment of all aspects / components to conclude the learning process, with the understanding that the learner is ready to be assessed. It is also linked to specific learning outcomes.
Methods to be used
Exercises/Activities in your Learner Guide – or E-learning
• Discussions with your coach
Discussions with your
fellow learners / colleagues
Performed by Trained Assessors
When
During the learning process
As per your assessment plan
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Symbols Used