Help Ltd has three directors and no constitution.The three directors are Harry the managing director, Egbert the non-executive Chairperson and Laurel, a non-executive director.

At the next directors' meeting the board is to consider the renting of a factory from Harry's wife Harriet and the purchase of a new forklift from Industrial Pty Ltd, a company in which the sole member and director is Larry, brother of Laurel.

REQUIRED:

(a) If Help Ltd is to enter into each of the two transactions above, it and its directors, must comply with specific requirements as prescribed by the Corporations Act. Describe in detail what these requirements are and apply them to each transaction:

(i) the rental of the factory;(7 marks)

(ii) the purchase of the forklift. (3 marks.