ABC WIRELESS Ltd is a private company limited by shares which was registered in August 2006 with authorised share capital CY￡1.000. A&B CABLE Ltd is subsidiary to ABC WIRELESS Ltd. Paul, Mary and Tim are the directors of ABC WIRELESS Ltd, and ABC WIRELESS Ltd is the director of A&B CABLE Ltd. In February 2007, when the issued share capital of ABC WIRELESS Ltd was CY￡800, the directors decided to raise money in order to finance the activities of ABC WIRELESS Ltd. Paul suggested that the company should issue shares at a discount, in order to attract existing shareholders to subscribe for new shares. Mary suggested that ABC WIRELESS Ltd should make a loan from its subsidiary, A&B CABLE Ltd, in which case a fixed charge could be created on the book debts of ABC WIRELESS Ltd.Required:Advise Tim as to the feasibility and procedure required to implement each of the suggestions of Paul and Mary respectively. (10 marks)
