Mr Lizard is a company director of FoneMe Ltd, which

is a very large public company providing internet

services to over 4 million subscribers.

He attends a meeting of the Board of Directors and

they decide that they should takeover a smaller startup

company called MaKelt Ltd. This means they will be

buying up the shares in MaKelt Ltd which usually

means the share price in the target company will rise

in value.

Lizard decides this is an opportunity too good to pass

up. So he leaves the Board meeting and buys 200,000

shares in MaKelt Ltd before the decision of the Board

is made available to the public.

He makes a nice profit of over $500,000 and rejects

any criticism from the share sellers as "luck of the

market".

Using the IRAC format, explain whether this is

permissable share trading. Your answer must include

relevant legislation and decided cases.