PLEASE HELP ME WITH THIS QUESTION AND I WILL MARK IT HELPFUL

A client of yours is the Chairman of a company, Wits Development Co (Pty) Ltd (WDC), that primarily develops retail shopping centers.Your client has identified a property that she feels is suitable for new development.The property is a block of flats.Your client believes that the property is suitable for re-development into commercial space.The property is currently owned by a company called

ABC (Pty) Ltd and is valued at R20 million.Your client would prefer not to purchase the existing company (ABC) and would rather purchase the property on behalf of a new development company to be formed, which will be called WDC Number 2 (Pty) Ltd.The current owner of the company (the seller) would rather sell the existing company to your client and not wait for the new proposed company to be formed.

a)advise your client regarding any problems you foresee with the purchase of the existing company as well as any other suggestions you may have regarding the structuring of this deal.

c)The Chairman tells you that the CEO is authorized in terms of the company's constitution to enter into transactions relevant to the company's business to the value of R1000000 and any transactions in excess of this amount have to be authorized by the board of directors.The Chairman also tells you that the CEO has purchased a new office block for the company (WDC) which costs R4000000 without obtaining a resolution from the board of directors.The company wishes to get out of this transaction as they do not want the building.

You are required to advise your client with reference to the Companies Act 71 of

2008?