Pro-shift (Pty) Ltd, a black economic empowerment company, wishes to acquire shares in

Cashflex Ltd. Unfortunately, Pro-shift (Pty) Ltd's financial position does not allow it to purchase

the shares without first acquiring a loan. Cashflex Ltd wants Pro-shift (Pty) Ltd to become a

shareholder in it as this would enable Cashflex Ltd to be compliant with the company's corporate

social responsibility goals. Cashflex Ltd intends to offer the shares to Pro-shift (Pty) Ltd at a lower

price and better interest rate than would be possible if Prof-shift (Pty) Ltd were to acquire a loan

from a financial institution. Discuss the nature of the proposed transaction and the relevant

requirements as contained in the Companies Act 71 of 2008