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1. Paul runs a lucrative business as a plumber. He decides to form a company called “Palumbers Ltd” to take over the business. He buys two vans for $15,000 each and sells them to the company for $25,000 each. No mention of this is made in the prospectus of the new company. The members of Palumbers Ltd have now discovered this transaction.

Advise Palumbers Ltd regarding any remedies that it may have against Paul.

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