Read the following extract:
Tongaat Hulett is seeking a thumping R450-million in civil claims against former executives after the accounting fraud
revealed by the company in 2019, the company announced on Tuesday. This signals a growing claw-back trend against
errant directors. The civil action is based on the findings of the PwC forensic investigation — namely, unjustified enrichment,
damages consequent upon the breach of their fiduciary duties and misrepresentation. Tongaat Hulett is also seeking an
order declaring them as delinquent directors.
The KwaZulu-Natal based sugar company Tongaat Hulett was fined R7. 5-million last year by the JSE for misrepresenting
its financial statements between 2011 and 2018, a scandal second only to the Steinhoff debacle in scale, and one that has
cost more than 5,000 jobs and millions of rands for investors.
(Source: https://www.dailymaverick.co.za/article/2022-01-11-no-sugar-coating-this-tongaat-hulett-institutes-r450-millionclaim-against-former-executives/)
You have been appointed as a consultant by the newly elected Tongaat Hulett board. You are required to perform the
following tasks . Your own research is essential.
Answer ALL the questions in this section.
Question 1 (25 Marks)
Provide a high-level description of Tongaat Hulett and with the aid of a diagram, analyse and discuss the parties to
corporate governance as it pertains to that institution.
