In 2000, Alfred and two friends formed a bicycle manufacturing company called Bikes (Pty) Ltd. The main objects were stated to be:(1) To manufacture and retail bicycles;(2) To borrow money.(3) To support retired employees and their dependants financially.At the end of the main objects clause, it was stated that all clauses are to be read independently of the others.Initially, the company did well but as competition grew, it faced increasing difficulties to sell its bikes. It was decided to modify the factory and use it to manufacture paints and pigments. Initially, the manufacturing was to be done by another company and the paints and pigments, supplied in big vats, were to be packed by Bikes (Pty) Ltd in smaller tins for sale in the retail market. Bikes (Pty) Ltd did not alter its memorandum of association. Alfred then entered into the following contracts on behalf of the company as a managing director:(a) The purchase of paints and pigments in vats from Bright Chemicals;(b) The purchase of machinery to manufacture paints and pigments from Best Manufacturers;(c) A loan of R50,000 from New Bank Ltd to finance the new venture. This loan was paid into Bikes (Pty) Ltd’s bank account which had a credit balance of R5,000;(d) A payment of R5,000 to Hope, the widow of the retired factory supervisor, who was in financial difficulties.Required:Discuss the validity of these contracts under company law. (10 marks)