QUESTION 2 (20 marks) The following information relates to Interstellar (Pty) Ltd ("Interstellar"), an entity that bottles spring water. Interstellar has a February financial year-end and has been operating for more than 10 financial years. Recently, Interstellar has however been declared insolvent. The directors of Interstellar is: - Esther Stoltz: Financial Director and CA(SA). - Adrian Stoltz: Managing Director and husband of Esther Stoltz. - Yvonne Jooste: Independent, Non-executive Director (Appointed by Managing Director, Esther Stoltz). - Ahmed Patel: Non-executive Director and a member of the Remuneration Committee. Interstellar had an authorised share capital of 15000 ordinary shares on 1 March 2022. The shareholders are as follows: - Esther Stoltz (5000 ordinary shares) - Adrian Stoltz (4 800 ordinary shares) - Ahmed Patel (3 200 ordinary shares) Upon inspection of the minutes of Board Meetings held during this financial year, the following important points were noted: 1. It was unanimously agreed that an interest-free loan of R4 million, repayable within 20 years, will be granted to Adrian Stoltz as a personal loan. 2. The entity needs to implement upgrades to the premises. They need to raise additional capital and decided to issue 5000 ordinary shares. The directors all unanimously approved the issue of the 5000 ordinary shares to Yvonne Stoltz (3 000 ordinary shares) and Ahmed Patel (2 000 ordinary shares). The directors confirmed that no conditions, requirements or limitations in respect of the issuing of shares are contained in the Memorandum of Incorporation. Identify the two (2) contraventions of the Companies Act 71 of 2008 ( the Act") that are evident from the information provided respectively for points 1 and 2. As always, limit your discussion to aspects provided in the information. Remember to always state the section/regulation in the Act, then apply the specific section/regulation identified in the Act to the scenario in the