Kagiso is chairman of the board of directors of Kwacha Supermarket, a limited liability company running a chain of stores in Botswana. Kagiso holds 60% of the shares in Kwacha Supermarket.Kwacha Supermarket entered into a contract with Tlhapi (Pty) Limited for the supply of frozen fish. At the time of conclusion of the contract, Kagiso was managing director of Tlhapi (Pty) Limited. Kwacha Supermarket paid for the supply of the frozen fish. The other directors of Kwacha Supermarket later discovered Kagiso’s involvement in the transaction, and now wish to rescind the contract with Tlhapi (Pty) Limited.Required:Advise Tlhapi (Pty) Limited if the contract is enforceable against Kwacha Supermarket, discussing the provisions of the Companies Act, 2003 dealing with directors’ interests in a transaction to which the company is a party. (10 marks)
