Question 3

3.1 Lerato owns a solar installation and maintenance business. During the COVID-19 pandemic lockdown period, her business suffered financially. As a result, her estate has been provisionally sequestrated. Lerato's trustee informs her that she may enter some form of arrangement with her creditors to stop the sequestration process from running its full course. Advise Lerato on the two forms of arrangements that she may enter into with her creditors. In your answer explain the differences between the two procedures. (10)

3.2 Critically discuss the legal principles set forth in Rand Air (Pty) Ltd v Ray Bester Investments (Pty) Ltd 1985 (2) SA 345 (W) regarding the need to establish a "just and equitable" ground for the winding up of a company. (10)

3.3 Explain briefly when a company is deemed to be unable to pay its debts. (5)