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the companies Act 71 of 2008 introduced the solvency and liquidity test which directors of companies must apply prior to embarking on certain actions or

the companies Act 71 of 2008 introduced the solvency and liquidity test which directors of companies must apply prior to embarking on certain actions or transactions.

1. explain the requirements of the solvency and liquidity test in the companies Act 71 of 2008. (for 5 marks )

2. list the actions or transactions to which the solvency and liquidity test must be applied. (for 5 marks)

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