After several months of negotiations, the CEO of BIG Pty Ltd made the long-awaited announcement to board members that BIG Pty Ltd would be buying Melbourne based company, YAY Pty Ltd for $25m. The following persons were present at the meeting: Helen and Liam (Company Directors) and Tammy (Receptionist taking meeting minutes). News of the take-over would not be released to the public until the following week.

Discuss whether Tammy would be breaching any duties if, immediately after leaving the boardroom, she phoned her husband and told him to invest $100,000 in YAY Pty Ltd.

answer structure

Issue: What Tammy would be breaching any. Rule: According to CA s 182 and 183 Analyze: Here the facts tell us Conclusion: Clear that Tammy would be breaching Duty __

Australia