Question
Claudia is a director of a public company. The company is engaged in secret negotiations for the acquisition of a controlling stake in an unlisted
Claudia is a director of a public company. The company is engaged in secret negotiations for the acquisition of a controlling stake in an unlisted public company. Claudia asks her stockbroker to buy some shares in the target company, but to list her brother as the purchaser. The shares purchased are 1000 shares at a price of $5.00 per share. After the negotiations become public, the share price rises to $7.50 per share. Claudia then asks her accountant to sell the shares. Which of the following is correct? Please explain your answer. (a) Claudia has only breached her duty under s 181.
(b) Claudia has only breached her duty under s 182.
(c) Claudia has only breached her duty under s 183.
(d) Claudia has breached her duties under ss 182 and 183. (e) Claudia has not breached any of her duties.
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