Question 5 [15]

Mini Research Assignment It is important for a law student to be able to do research and to independently debate topics and draw well thought through conclusions based on legal principles and supportive documents or case law. This research assignment will challenge you to move outside your comfort zone of only consulting your Study Guide and textbook, but it will give you the opportunity to grow academically and to capacitate you to be ready for the work environment.

NOTE: For this question you need to make use of internet sources such as EBSCO Host, Sabinet and other internet sources. You must provide the web link to the article and other sources you are referring to. (Remember the STADIO/Harvard Referencing Method) You will obtain a mark of 0% for an answer which you simply copied and pasted as your own work. (Be mindful of the serious matter of plagiarism) Also refrain/do not simply add an article as your answer. You may make use of other internet sources (but under no circumstance from Wikipedia and you must also provide the web link).

Your answer may not exceed 2 typed pages. Any pages more than 2 pages will not be marked, and you may therefore lose marks. Remember that a good answer should (1) Identify the subject matter/issue/topic, (2) Define the principle/Rule/Law, (3) set out elements/requirements of the principles and/or defences, (4) Refer to applicable case law or authoritative writers, (5) Applicability of the facts in question to the case and (6) a well thought through conclusion. The general principle of an introduction, body and conclusion is also applicable.

INSTRUCTION: These days it is frequently reported in the news that companies are facing liquidation due to corrupt activities. I want you to address the following aspect:

The personal liability and disqualification of directors of companies trading in insolvent circumstances. Thus: to which extend must directors be liable in their personal capacity for fraudulent trading