Company Law

Tommy Apartment (Pty) Ltd is a Company situated in Bulawayo, at No 9 J Tongogara and Leopold Takawira, Bulawayo, Zimbabwe. Tommy Apartments (Pty) Ltd is dully registered and incorporated in terms of the laws of The Republic of Zimbabwe. Tommy Apartments (Pty) Ltd trades in the business of supplying student accommodation to The National University of Science and Technology (NUST) students, primarily, situated outside the university main campus at Riverside. As of recent, the Zimbabwen economy has endured economic fractures which has seen numerous companies closing shop as they are unable to keep up with the sinking economy. The company is unsure whether it should continue in its trade as it has a bond over a loan with Standard Bank Zimbabwe for USD$ 700 000, of which only USD$ 50 000 has been settled thus far. The company’s financial statements depicted current assets to a total of USD$ 300 000, while liabilities of the company stood at a hefty USD$ 1 000 000 (1 million United States Dollars).Creditors who had invested in Tommy Apartments (Pty) Ltd are frustrated and have been threatening some of the Directors of the company. One of the Directors of Tommy Apartments (Pty) Ltd is worried the situation will get out of hand, he instructs you to advise him on the measures the company should take as he believes the company if given a chance can recover.

Instruction:

1. Draft legal arguments addressed to Tommy Apartments (Pty) Ltd, to which you should cite the relevant legal authorities (cases).

2. Your legal arguments should show cause as to which route the company should take & why.