Sipho, Nandi and Brian are shareholders in a private company, Sideline (Pty) Ltd. Sipho holds 10 ordinary shares, Nandi holds 60 cumulative preference shares and Brian holds 15 ordinary shares. The director of the company, who is Nandi's husband Enzo, is in financial difficulty. He asks Nandi to approve a loan of R50 000 to him, which she does.
Sipho and Brian find out about this and are very unhappy since there was no shareholder meeting to approve the loan. Advise Sipho and Brian whether there are any remedies for them to set aside the decision made by Nandi or to recover the money from Nandi personally.
