Notice in terms of section 45(5) of the Companies Act No. 71 of 2008
Tongaat Hulett Limited
Registration number 1892/000610/06
Share code: TON
("Tongaat Hulett" or the "Company")
NOTICE IN TERMS OF SECTION 45(5) OF THE COMPANIES ACT No. 71 of 2008
Notice is hereby given in terms of section 45(5) of the Companies Act that the board of directors
of Tongaat Hulett ("Board") has adopted a resolution authorising the Company to provide direct
or indirect financial assistance within the following categories to or for the benefit of related
and inter-related companies and corporations:
(i) pursuant to trading account transactions with related and inter-related companies and
corporations including, inter alia, settling costs and expenses incurred by, or in
connection with, related and inter-related companies and corporations;
(ii) in the form of loans or other investments into related and inter-related companies and
(iii) in the form of guarantees and suretyships for the benefit of related and inter-related
companies and corporations for loans owing by, and undertakings and obligations
furnished or incurred by, related and inter-related companies and corporations, to
subject to the following restrictions:
- the total amount owing (whether or not due and payable) by related and inter-related
companies and corporations to the Company pursuant to such financial assistance
furnished by the Company on and after the date on which the Board resolution was
passed shall not at any given point in time exceed an amount of R80 000 000 (eighty
- the Company shall only be entitled to provide financial assistance in the form
contemplated in paragraphs (i) and (iii) above to related or inter-related South African-
incorporated companies; and
- the latest date on which financial assistance can be provided (conditionally or
unconditionally) pursuant to the Board resolution is 31 January 2020.
This notification is required because the financial assistance will potentially exceed one-tenth
of 1% of the Company's net worth at the time of the Board resolution.
In accordance with section 45 of the Companies Act, and after considering, inter alia,
management communications and valuations of the Company’s assets and liabilities, the Board
is satisfied that:
(i) immediately after providing the financial assistance, Tongaat Hulett would satisfy
the solvency and liquidity test in the Companies Act; and
(ii) the terms under which the financial assistance is proposed to be given are fair and
reasonable to the Company.
15 August 2019
Investec Bank Limited
Date: 15/08/2019 01:07:00
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