ELLEN ltd is a listed company that specializes in the development of IT systems. Its designs, develops and installs new IT systems for major clients. The board of directors consists of a chief executive officer (CEO) and three independent non-executive directors. The CEO Thomas has been absent from work for the past 12 weeks following: A car accident and is not expected to return for at least another 3 weeks. During his absence, the duties of CEO have been undertaken by GD, the chief financial Officer (CFO). During Thomas's absence, GD has been involved in a number of major decision by the board with regard to the company's strategic objectives and strategic plan. Just before his accident, Thomas agree a contract with Hight Telecom for ELLEN to design, develop and install a new IT system that should help High Telecom to expand its business. The agreed fee for the contract was exceptionally low, and the prime concern in Thomas' mind when he agreed the price was how he might benefit personally from his 20% ownership of High Telecom Share. Thomas did not refer the project to the board of ELLEN for approval, and negotiated the contract price personally. ELLEN finished the project on schedule, but made a substantial loss on it. High Telecom gained immediate benefit from the new system, and its prospective sales and profits have increased substantially. Following announcement to the stock market by ELLEN of a profit warning for the current year as a consequence of the High Telecom contract, the share price of ELLEN fell immediately and substantially. The share price of High Telecom has risen in expected of growth in sales and profits. The other directors of ELLEN became aware of Thomas' shareholding in High Telecom only after the agreement with High Telecom was made. The Board has also been informed that Thomas has sold all his shares in ELLEN recently, just before the big fall in the share price. Questions: 1. Should GD be regarded as a director of ELLEN during the absence from work of Thomas? Defend your answer with reference to the given fact 2. What are the duties of CEO and CFO? 3. Had Thomas involved in insider trading? Defend your answer with given facts, www 4. As CFO, what should you to when you know that Thomas did?