QUESTION 1 20 MARKS Briefly answer the following short questions: 1.1 In terms of the historical perspective in regard to the maintenance of share capital, share capital has a specific function. This function was described by Lord Watson in Trevor v Whitworth (1887). What were the main points of his statement? (3) 1.2 Explain the term corporate as used in the context of corporate governance. (2) 1.3 To which common law rule is the statutory authorization of payment of interest out of capital on shares issued for the construction of buildings, etc or the provision of a plant, which for a lengthy period cannot produce profits, an exception? (1) 1.4 What are the main differences is between the redemption of preference shares and a company buying back its own shares in terms of section 89 of the Companies Act, 2004? (4) 1.5 What is meant by a casual vacancy when referring to the external auditor of a company? (2) 1.6 May a member of a Close Corporation be appointed as its accounting officer? (2) 1.7 A juristic person acting as trustee of a trust may, subject to certain conditions, become a member of a Close Corporation. List these conditions. (3)