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  3. the central bank of kundakwashe enteredinto an agr

The central bank of Kundakwashe enteredinto an agreement with Mbuzumai Resourcesltd on the understanding that...

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Accounting

The central bank of Kundakwashe entered
into an agreement with Mbuzumai Resources
ltd on the understanding that they'll provide
a loan to Kalahari Mining company. However,
the directors for Mbudumai advised the
shareholders of the company that Mbudumai
does not have enough funds to fund Kalahari
Mining. The shareholders for Mbudumai
ignored the advice and went ahead to
authorize a huge sum of money to be paid
as a loan to be paid to Kalahari Mining. The
shareholders did that on advice from River
Course company ltd, this advice was given
without liability. Later on , Kalahari Mining went
into liquidation. Critically analyze the legal
issues involved in the transaction

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