In Namibia

(8 marks) QUESTION 4 You are the internal auditor of Wishy Washy Ltd. The company imports washing machines from China and distributes them to local retailers. An abstract from the annual financial statements of 31 December 2017 is as follows: 2016 2017 N$'000 N$'000 Authorised share capital 2 000 000 ordinary shares at N$2.00 each 4 000 4 000 Issued share capital 1 500 000 ordinary shares at N$2.00 each 3 000 3 000 Share premium 1 500 1 500 The following decisions were taken at a general meeting: 1. A loan of N$50 000 will be made to Spring Clean (Pty) Ltd, a fellow subsidiary of Wishy Washy Ltd. 2. A warehouse of N$3,4 million will be sold at a profit of N$1 million. The total assets of Wishy Washy Ltd are N$6 million 3. From the above fund, a loan of N$30 000 will be made to each director to enable them to buy a new motor vehicle. REQUIRED: In all the cases above, discuss the requirements in terms of the Companies Act. If any action contravene the provisions of the Companies Act, briefly describe why you say so. (8)