Corporate Law & Governance Quiz

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Questions and Answers

According to the common law, which case established a company's right to equality?

Manong & Associates (Pty) Ltd v City Manager, City of Cape Town & another

What legal right, concerning a company’s public image, was affirmed by the case Dhlomo v Natal Newspapers (Pty) Ltd?

Reputation, a good name and honour.

In which case was a company's right to privacy established?

Financial Mail (Pty) Ltd v Sage Holdings Ltd

What right did the court affirm for companies in the University of Pretoria v Tommie Meyer Films case?

Identity Signup and view all the answers

What is the primary aim of corporate governance?

To regulate and oversee corporate conduct to balance stakeholders' interests and the interests of others, ensuring responsible behavior, efficiency and profitability. Signup and view all the answers

What does the acronym 'CSR' generally refer to?

Integrating economic, social and environmental imperatives into a company's activities while addressing shareholder and stakeholder expectations. Signup and view all the answers

What is the underlying idea behind corporate social responsibility regarding a modern company?

That a modern company has a wide and diverse range of stakeholders, both business and socio-economic. Signup and view all the answers

How are stakeholders defined in relation to a company's activities?

Those who may affect or may be affected by the company's activities. Signup and view all the answers

According to the provided text, what is the requirement, when applying the Bill of Rights to a person, in order to effect a right?

A court must apply or develop the common law if legislation does not give effect to that right. Signup and view all the answers

Under what condition can a court develop common law rules to limit a right from the Bill of Rights?

If the limitation is in accordance with the limitation clause contained in section 36(1) of the Constitution. Signup and view all the answers

What three values are named as the foundation of the Republic of South Africa in the text?

Human dignity, the achievement of equality and the advancement of human rights and freedoms. Signup and view all the answers

What is the connection between ubuntu and constitutional values?

Ubuntu underlies the building of our constitutional democracy and is consistent with the constitutional values. Signup and view all the answers

What is the fundamental rule related to choosing a name for a business enterprise, as informed by ubuntu, in the text?

The name should not be offensive, racist or negatively impinge on an individual's right to dignity. Signup and view all the answers

How should the values of ubuntu influence corporate decision-making by directors, according to the provided text?

They must inform the manner in which corporate decisions are taken by directors. Signup and view all the answers

What specific culture is promoted through the infusion of ubuntu to ensure constructive dialogue?

The culture of social cohesion. Signup and view all the answers

What is a primary objective of the Companies Act, as it's described in the text, relating to the Bill of Rights?

To promote compliance with the Bill of Rights in the application of company law. Signup and view all the answers

What is the primary goal of Africanisation, according to the provided text?

To maintain sound relationships by accommodating opposing views and conciliating competing interests. Signup and view all the answers

What is a foundational element of the ubuntu concept?

An inclusive approach of joint decision-making in matters that affect the business as a whole. Signup and view all the answers

What is the Zulu saying that embodies the concept of ubuntu, and what does it mean?

<code>umuntu ngumuntu ngabantu</code>, meaning a person is a person through other people. Signup and view all the answers

In the South African legal context, which case explicitly applied the concept of ubuntu?

S v Makwanyane 1995 (6) BCLR 665 (CC). Signup and view all the answers

How did Harms JA characterize ubuntu in the Pharmaceutical Society of South Africa case?

As a relationship of mutual respect. Signup and view all the answers

In the Koyabe case, what was ubuntu associated with, according to Mokgoro J?

A general obligation to treat people with respect and dignity, to avoid undue confrontation, and to give reasons for administrative decisions. Signup and view all the answers

Which report first canvassed the idea of introducing African business values, specifically ubuntu, in South Africa?

The second report issued by the Institute of Directors of South Africa King Report on Corporate Governance, 2002. Signup and view all the answers

According to the King IV report, what should the common purpose of all human endeavors be?

That of service to humanity. Signup and view all the answers

According to the court in Mpofu, what specific section of the Constitution is particularly important for state-owned companies?

Section 195 Signup and view all the answers

What does the court in Mpofu stress should be applied to leadership, to 'emerge from the past'?

African leadership philosophy and values. Signup and view all the answers

In Dikoko v Mokhatla, what does Sachs J say ubuntu-botho is not?

Window-dressing that is invoked to add to a legal finding. Signup and view all the answers

According to Dikoko v Mokhatla what two aspects of the constitution does ubuntu support?

Liberty and equality Signup and view all the answers

According to the Port Elizabeth Municipality v Various Occupiers case, what does the spirit of ubuntu combine?

Individual rights with a communitarian philosophy. Signup and view all the answers

What is considered the catalyst for positive transformation?

Sound leadership Signup and view all the answers

Briefly, how does the text describe the history of the subjugation that African leadership philosophy seeks to overcome?

The history of subjugation and exploitation includes the remnants of slavery, colonialism, imperialism and globalization. Signup and view all the answers

According to Dikoko v Mokhatla, what type of culture is ubuntu foundational to within South Africa?

Foundational to the constitutional culture of reconciliation and bridge-building. Signup and view all the answers

Besides shareholders, name three other types of company stakeholders.

Employees, customers, and suppliers Signup and view all the answers

What is the main idea behind Corporate Social Responsibility (CSR)?

Companies should manage their role in society responsibly and contribute to sustainable development by cooperating with their stakeholders. Signup and view all the answers

What do critics of CSR say about the link between social behavior and company success?

Critics argue there isn't a direct link between a company's social actions and its competitive advantage or performance. Signup and view all the answers

According to proponents, how can CSR enhance a company's long term value?

By creating mutually beneficial relationships with stakeholders, which can lead to more business opportunities and enhance profit potential. Signup and view all the answers

Mention one way socially responsible companies may benefit in South Africa?

They may benefit from preferential procurement and government cooperation in terms of Broad-Based Black Economic Empowerment. Signup and view all the answers

How might CSR help a company stand out from its competitors?

CSR can enhance the company’s reputation and differentiate it from its competitors. Signup and view all the answers

What is an outdated view of the primary goal of a business?

The traditional viewpoint is that the only goal of business is to increase profits. Signup and view all the answers

Name two stakeholders, that are not directly related to business transactions with a company

Communities surrounding the company’s operations and the environment Signup and view all the answers

What specific sections of the Companies Act deal with the registration of domesticated and external companies?

Sections 14 to 18 and section 23 Signup and view all the answers

Name two specific sections of the Companies Act that reflect greater sensitivity to globalization.

Section 58 and section 63(2) Signup and view all the answers

Besides the Companies Act, name two other main pieces of legislation impacting business enterprises in South Africa.

Close Corporations Act 69 of 1984 and the Trust Property Control Act 57 of 1988 Signup and view all the answers

What is the primary intention behind the Companies Act regarding corporate governance and investment?

To increase standards of corporate governance and encourage local and foreign investment. Signup and view all the answers

Name three pieces of legislation, other than the main business enterprise acts, that can significantly impact companies in South Africa.

Insolvency Act 24 of 1936, Income Tax Act 58 of 1962, and the Competition Act 89 of 1998 Signup and view all the answers

What is the role of the Constitution of the Republic of South Africa, 1996, in relation to legislation like the Companies Act?

It provides the context within which all legislation must operate and the Companies Act must promote the Bill of Rights. Signup and view all the answers

Give two examples of acts, not directly governing business enterprises, that demonstrate South Africa's broader legislative framework.

The Promotion of Access to Information Act 2 of 2000 and the Labour Relations Act 66 of 1995 Signup and view all the answers

What is a key purpose of the Companies Act, besides corporate governance and investment, that aims to align with constitutional principles?

To promote compliance with the Bill of Rights. Signup and view all the answers

Study Notes

MRL2601 Study Guide (Entrepreneurial Law)

This study guide is for the University of South Africa's Entrepreneurial Law module (MRL2601).
The guide covers various business forms, including companies, trusts, partnerships, and close corporations.
It emphasizes the impact of the South African Constitution and globalization on entrepreneurial law.
The guide includes important sections of legislation, such as the Companies Act 71 of 2008, Close Corporations Act 69 of 1984, and the Trust Property Control Act 57 of 1988.
The guide also references case law for practical application.
It details the procedures for registering companies, including name reservation processes.
The guide outlines the legal personality of various business entities, and discusses potential implications
It examines the various roles of directors and their duties, including the role of board committees
It includes detailed analysis of corporate social responsibility and how it affects companies in South Africa
It includes a significant discussion of the concept of Ubuntu and its legal implications
The guide highlights legal issues and provisions concerning the different types of business forms.
It covers the process of incorporating various business entities and the legal ramifications thereof
This guide is a primary study tool for MRL2601 and provides a structured approach to learning the subject matter. Notably, it emphasises a practical, application-oriented approach to the legal study.

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Description

Test your knowledge on key aspects of corporate law, including landmark cases and the principles of corporate governance. This quiz covers essential rights and responsibilities of companies in relation to the law and their stakeholders. Brush up on concepts like corporate social responsibility and the values that underpin South African legal frameworks.