The board of directors of Y Ltd, which was a private company, decided to appoint Florence as a new director. The board of directors also resolved to issue new shares to Florence in order to fulfill the qualification shares requirement (i.e. the minimum amount of shares that a director must hold). Florence agreed to accept the appointment and buy shares provided that Y Ltd could pay the interests to the bank from which she would take out a loan for the purpose of buying the new shares. Leonardo, another director of the company, proposed to the board that he would like to buy more shares in the company. However, the majority of the directors disagreed because the company did not need to raise extra finance Explain the legal implications of the facts to the chairman of the board of Y Ltd