Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 2 (27 marks) Concorde CC is an entity located in Germiston that manufactures clothes using recycled material. The entity has a 31 December financial

image text in transcribed
image text in transcribed
QUESTION 2 (27 marks) Concorde CC is an entity located in Germiston that manufactures clothes using recycled material. The entity has a 31 December financial year-end. Mr. Brad Harrison has been appointed as the secretary of Concorde CC, effective 1 January 2023. He is also one of the members of Concorde CC. Mr. Brad Harrison is required to arrange the first Annual General Meeting ("AGM") of 2023. The meeting is scheduled to take place on 1 March 2023, and the following matters are on the agenda: 1. Approval of the profit distribution to the members for the 31 December 2022 financial year. 2. Mrs. Carin Van Niekerk, one of the other members of Concorde CC, requested to borrow money from the entity. 3. The annual financial statements for the financial year ended 31 December 2022 of Concorde CC have been finalised and the members of Concorde CC are meeting on 1 March 2023 to discuss and approve these annual financial statements. The financial statements show that the company made a loss for the 31 December 2022 financial year. 4. The appointment of an Accounting Officer. Concorde CC would like to appoint Mr. Themba. Mr. Themba has no qualifications and is not a member of any professional body. He is, however, the fiance of one of the members, Miss Laurel Walsh, and may therefore be trusted. You can assume that all the members of Concorde CC attended the Annual General Meeting on 1 March 2023 2.1 Indicate who will be able to request a meeting of members for a Close Corporation and whether Mr. Brad Harrison will be able to do so. (3 marks) 2.2 Based on the information presented, discuss whether you agree with the members planning to approve a distribution from Concorde CC to the members for the 31 December 2022 financial year. (6 marks) 2.3 Explain, in detail, whether Mrs. Carin Van Niekerk may borrow funds from Concorde CC according to the Close Corporations Act 69 of 1984. (7 marks) 2.4 Examine whether the completion and approval of Concorde CC's 31 December 2022 financial statements are in accordance with the requirements of the Close Corporations Act 69 of 1984 (7 marks) 2.5 With reference to the Close Corporations Act 69 of 1984 , review whether Mr. Themba can act as an Accounting Officer of Concorde CC

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

My Adventures As An Auditor

Authors: Michael Quoter

1st Edition

1079508821, 978-1079508826

More Books

Students also viewed these Accounting questions

Question

What magazine and ads did you choose to examine?

Answered: 1 week ago