Crafty Construction (Pty) Ltd is a construction company formed some ten years ago by three brothers David, Ed and Frank. The company has a nominal capital of 500,000 shares of R1 nominal value, allotted as follows: 200,000 to David, 200,000 to Ed and 100,000 to Frank. The company has not been performing particularly well for some time, but has made a profit of R100,000 in the past year.Frank has recently suffered a heart attack and he needs to realise his R100,000 shareholding to help finance his purchase of a house in a retirement village. David and Ed would like to help him but neither can raise the R100,000 to purchase the shares and, given the company’s trading situation, an outsider cannot be found to buy at that price.Required:Advise the parties as to whether, and if so how, Crafty Construction (Pty) Ltd can buy the shares itself. (10 marks)
