Question
GrowthBUILTisaconstructioncompanythatconstructssmallofficeblocksandresidentialflats.Thecompanyrapidlyexpandedoverthepastyearsandnowhavethepossibilityofobtainingtenderstomoveintoneighbouringcountriestoerectshoppingmallsandstatehospitals.Duetotheseexpansionplansandtheresultantneedforadditionalcapitaltofundtheseprojects,thecompanyisintheprocessoflistingontheJSE.GrowthBUILT'sboardofdirectorsaremostlycompliantwithgovernancerequirementsassetoutinKingIVandadditionally,theboardneedstocomplywiththeJSEListingRequirements. Twoofthedirectorsaremarriedtoeachother,ArthurandMargoAtterbury,asthecompanystartedoutasasmallfamilybusinesswhenMrAtterburywasabuilderofresidentialhouses.MrAtterburyacknowledgesMrsMargoAtterbury'stalentsinbeingabletocomplywithinstructionsandensuringthatpoliciesaresetinmotion.HewantsMrsAtterburytobethefunctionarycomplyingwithPrinciple10,KingIV.Oneofthedirectors,MrShawnHendriks,thinksthattheyshouldobtainadviseonthefunctionsofdirectorsandotherroleplayersinordertocomplywithpropergovernanceofGrowthBUILT.AthirddirectorofGrowthBUILTisMrAtterbury'snephew,MrJimmySaqabo.MrSaqaboisalsoamemberofSetinStoneCC,aclosecorporationsupplyingbrickstoconstructioncompanies.MrSaqabowantsSetinStonetosupplythebrickstoGrowthBUILTforallfutureprojects,buttwodirectors,MrsAgnesHlaphiandMrShawnHendriks,donotthinkthatitwillreflectwellintheeyesoftheshareholders. Instructions:CriticallyexaminetheabovesetoffactsandadvisetheGrowthBUILTdirectorsaccordingtotheirspecificconcerns: Theappointmentofthedirectorsandseniormanagement; Theappointmentofacompanyofficers; CriticallyassessthebehaviourofMrJimmySaqabowithspecificadvicetotheboardofdirectorsofGrowthBUILTandtheapplicationofanypossiblerulesorprinciplestodetermineanyconflictofinterestbetweenGrowthBUILTandMrSaqabo. UsingSections4.8,4.9and4.10oftheJSEListingsRequirementsasastartingpoint,youressaymustadditionallyintegratetheprinciplesofKingIVand/ortheCompaniesAct2008andapply them to the facts. Include practical advice to the concerned parties in the applicable questions.Please make use of
GrowthBUILTisaconstructioncompanythatconstructssmallofficeblocksandresidentialflats.Thecompanyrapidlyexpandedoverthepastyearsandnowhavethepossibilityofobtainingtenderstomoveintoneighbouringcountriestoerectshoppingmallsandstatehospitals.Duetotheseexpansionplansandtheresultantneedforadditionalcapitaltofundtheseprojects,thecompanyisintheprocessoflistingontheJSE.GrowthBUILT'sboardofdirectorsaremostlycompliantwithgovernancerequirementsassetoutinKingIVandadditionally,theboardneedstocomplywiththeJSEListingRequirements. Twoofthedirectorsaremarriedtoeachother,ArthurandMargoAtterbury,asthecompanystartedoutasasmallfamilybusinesswhenMrAtterburywasabuilderofresidentialhouses.MrAtterburyacknowledgesMrsMargoAtterbury'stalentsinbeingabletocomplywithinstructionsandensuringthatpoliciesaresetinmotion.HewantsMrsAtterburytobethefunctionarycomplyingwithPrinciple10,KingIV.Oneofthedirectors,MrShawnHendriks,thinksthattheyshouldobtainadviseonthefunctionsofdirectorsandotherroleplayersinordertocomplywithpropergovernanceofGrowthBUILT.AthirddirectorofGrowthBUILTisMrAtterbury'snephew,MrJimmySaqabo.MrSaqaboisalsoamemberofSetinStoneCC,aclosecorporationsupplyingbrickstoconstructioncompanies.MrSaqabowantsSetinStonetosupplythebrickstoGrowthBUILTforallfutureprojects,buttwodirectors,MrsAgnesHlaphiandMrShawnHendriks,donotthinkthatitwillreflectwellintheeyesoftheshareholders. Instructions:CriticallyexaminetheabovesetoffactsandadvisetheGrowthBUILTdirectorsaccordingtotheirspecificconcerns: Theappointmentofthedirectorsandseniormanagement; Theappointmentofacompanyofficers; CriticallyassessthebehaviourofMrJimmySaqabowithspecificadvicetotheboardofdirectorsofGrowthBUILTandtheapplicationofanypossiblerulesorprinciplestodetermineanyconflictofinterestbetweenGrowthBUILTandMrSaqabo. UsingSections4.8,4.9and4.10oftheJSEListingsRequirementsasastartingpoint,youressaymustadditionallyintegratetheprinciplesofKingIVand/ortheCompaniesAct2008andapply them to the facts. Include practical advice to the concerned parties in the applicable questions.Please make use of headings. Reference all sources used. The essay should not exceed 1 000words.
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