Peter is a director of a small, relatively young, but highly successful telecommunications company called Tel Matilda Ltd. There was talk in a recent meeting of the directors about a possible takeover bid by National Transmissions Associates (NTA). NTA, a larger and well-established market leader, is not so much a rival as a complementary company that values Tel Matilda Ltds customer relationship strategy and its ability to target customers in regional areas through its personalised approach.

Peter knew that if the takeover materialised, NTA would increase its market share considerably, so he decided to buy 50,000 shares in NTA at $1.50 a share. Peter didnt see it as too much of a risk, because the share market was rather subdued at the time. Several months later, NTA made a generous bid for Tel Matilda Ltd; Peter voted for it, without mentioning his shareholding interest in NTA; and within days the shares Peter bought were selling for $2.70, yielding him $60,000 in profit.

Has Peter breached any directors duties under the Corporations Act 2001 (Cth)? Why/Why not?