The main object of TikTok (Pty) Ltd is the buying and selling of secondhand office furniture. The Memorandum of Incorporation provides that only the board of directors or any person authorised by the board, has the power to conclude contracts on behalf of the company. A further provision in the Memorandum provides that any transaction that exceeds R200 000 must first be authorised by the company in a general meeting by way of ordinary resolution. The Memorandum also contains a clause indicating that no contracts may be concluded which does not fall within the main object of the company. Mrs Bonnie, one of the directors, is authorised by the board of directors to conclude contracts on behalf of the company. Mrs Bonnie concludes a contact with Mr Clyde for the purchase of a holiday flat in Durban on behalf of TikTok (Pty) Ltd. The purchase price of the flat is R1.5 million. With reference to the Companies Act 71 of 2008, the Turquand rule and the Memorandum of Incorporation of TikTok (Pty) Ltd,

1.1 Discuss whether the contract for the purchase of the holiday flat is valid.

1.2 The classes of shares most commonly found are preference shares, ordinary shares and deferred shares. Discuss each of these shares