Hugo is a non-executive board director of Carter Ltd ('Carter'), a public company listed on the Australian Stock Exchange (ASX). The company markets a perfume for women. The perfume is very popular and sales have been almost doubling every six months. While reading the board papers sent to him for discussion at the next board of directors' meeting, he comes across a report from Carter's research department that one of the ingredients used in the manufacture of the perfume has been linked in the US with a rare form of illness. He quickly realises that the company may be forced to discontinue the sale of the perfume.

He places an order to sell 20,000 Carter shares at the market price of $2.50 per share. His order is matched by the ASX automated trading system with an order by another client who has instructed her broker to buy the same number of shares at that price. Following the board of directors' meeting, the managing director of Carter calls a press conference to announce that the hugely popular perfume will be withdrawn from sale due to concerns about one of its ingredients. Investors react negatively to the announcement and Carter's share price falls to $2.00 per share.

Q: Advise Hugo whether he is liable for insider trading and, if liable, the legal consequences that he would face.