Best Foods (Private) Limited (‘BFL’) is a company authorised by the objects clause of its memorandum of association to solely engage in the business of food processing. To enhance the profits of the company, the board of directors of BFL are considering importing energy drinks and distributing and selling them in Pakistan. BFL’s shareholders have asked the board of directors to explain whether the company is authorised to undertake the business of importing, distributing and selling energy drinks as proposed. The board of directors have approached you for advice.Required:In view of the provisions of the Companies Ordinance, 1984, analyse and explain whether BFL can undertake the proposed business. (10 marks)
