1. Midas Sdn Bhd is a major, international graphic design company. One of Midas' directors, Khadija, is in extreme financial difficulty and is close to having to declare himself bankrupt (which would make him ineligible to act as a director of Midas). Accordingly, to prevent this, the other directors of Midas cause the company to lend Khadija $15,000. The transaction is disclosed at a meeting of the directors and the directors unanimously agree to authorize the loan. Khadija was present at this meeting but did not vote on whether the loan should be made.

Midas' Articles of Association state that Midas plc may engage in any activity directly related, or incidental to, the carrying on of a graphic design business.' The directors of Midas cause the company to lend $5,000 to Ceri, who will then pay off the loan over a two-year period. Ceri is a major client of Midas, but aside from this, she has no other links with the company or its directors. Several Midas' members hear of the loan and argue that Ceri must repay the money immediately.

Discuss whether or not Midas or any of its directors have breached the law.