Due to a recession in trade, Hancock Confectionary Ltd decides to sell its wholly owned subsidiary, Nougat Ltd. Nougat Ltd constitutes the greater part of Hancock Confectionary Ltd’s business. Garry, a director of both Hancock Confectionary Ltd and Nougat Ltd, agrees with the chief accountant of Nougat Ltd that they will together buy the subsidiary from Hancock Confectionary Ltd for R500 000.Required:Discuss the provisions of company law that apply to this transaction. (10 marks)
