CA $1($a$)$

Ms$.$ Mutinta Chembe was a promoter of a company called Clay Colours Limited which is in the business of internal decorations. A few months before the registration of the Company, Ms$.$ Chembe signed a contract on behalf of Clay Colours Limited for the purchase of several pieces of furniture from Chembe Furniture Limited, a company in which she is a shareholder and a director. After the directors of Clay Colours Limited were appointed, they refused to honour the contract arguing that the whole transaction was improper. You are in the Administrative board for Clay Colours Limited and have been requested to advise the directors correctly before the matter becomes a potential litigation risk. Prepare the legal opinion. Making reference to one case law as well as relevant provisions of the Companies Act of $2017.[10$ marks$]$

$\backslash ($ N: B $\backslash )$ The answer to this question must only be two pages.