1. You are the Company Secretary of Sunn Limited. The company is proposing to appoint Mr Mesi and Ms Ncube as directors of the company but this is being resisted by Mrs Poto, the Finance Director who has the following concerns:

1. about Mr Mesi's track record in his past business dealings. Mrs Poto thinks that one of the previous companies of which Mr Mesi was a director had been struck off by the Registrar of Companies as defunct.

1. that Ms Ncube was previously a director of a company which became insolvent and was wound-up. He wants to know if this would prevent Ms Ncube from being appointed a director and how such matters are investigated.

REQUIRED:

Discuss in respect of the striking off of the suspected defunct company why this could have happened, what steps the Registrar would have taken prior to striking off, how the striking off would have been effected, how it could have been avoided, what would have happened to the assets of the company and whether Ms Ncube can be appointed as a director

( 13 marks)

1. Discuss how the Audit Committee plays a significant role in maintaining a relationship with the Independent External Auditors ( 7 marks)