Samir and Hamish were two of the directors of Cape Town Holdings. Samir was also a director of Australian Goldfields. They both owned shares in Australian Goldfields, Samir holding his shares in his own right while Hamish held his shares as trustee under a will. On the initiative of Samir, Cape Town’s board agreed to purchase the shares of Australian Goldfields. Both Samir and Hamish absented themselves when the discussions about the purchase as the vote took place. After the purchase was finalized, the board discovered the interests of Samir and Hamish and sought to have the contract rescinded. 

Required: 

Advise Cape Town Holdings’ board.