(a) Nhidza and Mujere are the sole shareholders and directors of Clearwaters (Pvt) Ltd, a company duly registered and trading in terms of the laws of Zimbabwe. The company’s object clause empowers it to construct swimming pools and to sell equipment, chemicals and other consumables used in the maintenance of swimming pools. The two entered into a contract with Diamond Bank Ltd involving the granting of a loan facility. As a result of the said contract Diamond Bank Ltd brought legal proceedings against them in their individual capacities for failure to service the loan. Nhidza and Mujere wish to know whether they are personally liable for the debts incurred by Clearwaters (Pvt) Ltd to the bank.Required:In relation to company law, advise the two directors on the issue of personal liability towards Diamond Bank Ltd. (5 marks)
