Question 1 (10 marks) (Your answer should be with maximum 200 words.) Elegance Company Ltd ("the Company") is a company selling different well known brands of luxurious cosmetic products, The Company's articles of association have the following provisions: Provision 111: The number of shareholders of the company shall be less than 20. Provision 112: The company cannot invite general public to subscribe for the new shares or debentures in the company. Provision 113: If any shareholders of the company intend to sell or transfer their shares, they need first sell or transfer the shares to the other existing shareholders of the company and cannot sell or transfer shares freely to outsiders. Explain what type of company Elegance Company Ltd. is. Question 2 (10 marks) (Your answer should be with maximum 200 words.) Vera owns a small shop selling stationeries in Ma On Shan. She wants to retire. She placed a notice in front of her shop which reads: "Shop for sale, HK$3,000,000 for the shop premise and HK$25,000 for all the stationeries in the shop. Can be purchased separately." Iris saw the notice in front of the shop. She has a stationeries shop in Shatin and wanted to buy all the stationeries in Vera's shop. She approached Vera and gave her two cheques of HK$3 million and HK$25,000 informing her that she intended to buy the shop and all stationeries. They agreed to sign two separate contracts for the two sale transactions. Explain to Iris whether the two contracts are governed by the Sale of Goods Ordinance. -- End of Section B