During the financial year under review, the board of Suit-up Ltd approved an interest free, unsecured loan in the amount of R7m to Jane Spector, the wife of the company's chief executive officer (CEO), Harvey Spector. You inspected the minutes of all the directors' and shareholders' meetings and concluded that no other authorisation was obtained to approve the loan. Suit- up Ltd's financial records indicate that the company, although solvent and liquid, was under severe financial strain before and after the loan was granted. Discuss the requirements of the Companies Act with regards to the loan granted to Jane Spector and conclude on the legality thereof. You should also make mention of the possible consequences for the directors who authorised the loan. www