UNIVERSITY OF KWAZULU-NATAL, PIETERMARITZBURG EXAMINATIONS: NOVEMBER 2009 SUBJECT, COURSE AND CODE: DURATION: 2 HOURS External Examiner: Mr MAA

Essa Internal Examiner: Ms S Soni STUDENTS ARE REQUESTED, IN THEIR OWN INTERESTS, TO WRITE LEGIBLY PLEASE NOTE: This exam paper consists of two (2) pages. Please see that you have them all THIS PAPER CONSISTS OF THREE (3) QUESTIONS. ANSWER ALL QUESTIONS QUESTION 1 Betty Boop has been married to Roger Wrabbit for twenty years. During the course of their marriage she has acquired a sizeable estate of her own. As a successful entertainer, she ensured that they were married out of community of property in order to protect her assets from being taken away by Roger in the event that they divorced. Although Roger is the owner of a film production company, he has not been completely honest about the financial status of his company. In order to appear to be as successful as his wife, he does not tell her that his creditors are attempting to sequestrate his estate. In July 2009, Betty is alarmed when she is woken up from her beauty sleep by the sheriff of the High Court. He informs her that her husbands estate has been placed under sequestration and he needs to attach all assets of the couple. Betty tells him that he is not to touch her assets since they were married out of community of property and that her estate has nothing to do with Rogers insolvency and cannot be attached. The sheriff informs her that in terms of section 21 he is required to attach her property too. Explain the following: (i) (ii) (iii) the manner in which section 21 of the Insolvency Act No. 24 of 1936 operates; the constitutional challenge to section 21 in Harksen v Lane NO and others 1998 (1) SA 300 (CC); and the manner in which she can secure release of her assets from the trustee. (20 marks) SECURITY AND INSOLVENCY (LAWS4SI) TOTAL MARKS: 60

UNIVERSITY OF KWAZULU-NATAL, PIETERMARITZBURG EXAMINATIONS: NOVEMBER 2009 SUBJECT: SECURITY AND INSOLVENCY PAGE 2

QUESTION 2 Explain the effect of a sequestration order on the status of an insolvent. In the course of your answer you must explain how the order affects: (i) (ii) (iii) The insolvents ability to contract; The insolvents right to earn a livelihood; and Types of office that the insolvent is precluded from holding. (20 marks)

QUESTION 3 Discuss: (i) (ii) the categories of person that are disqualified from occupying the office of trustee. circumstances under which the trustee must vacate his/her office, or is removed from office. (20 marks) TOTAL: 60 MARKS