Question
Ping is the CEO of Biotech Ltd, a small listed biotechnology company. Quentin is an executive who heads up the companys research division but is
Ping is the CEO of Biotech Ltd, a small listed biotechnology company. Quentin is an executive who heads up the companys research division but is not a member of the board, and Roberta is a non-executive director. One of Biotech Ltds arthritis drugs, Wonderdrug, has been associated with rare but serious side effects. Biotech Ltds research department has been investigating the issue, and has not been able to discover the mechanism by which Wonderdrug could cause these side effects. However, it has been able to rule out other known causes for the side effects in affected patients. Mention of a possible link between Wonderdrug and the side effects appears in the health pages of some newspapers and Ping asks Quentin to prepare a draft ASX announcement on this issue. The following draft announcement and copies of the media coverage are included in the package of materials at the next board meeting, listed under the heading Items for noting. Biotech Ltds research has revealed no link between Wonderdrug and serious adverse side effects. It continues to be safe for physicians to prescribe and remains the best available treatment for arthritis. There is no active discussion of the announcement at the board meeting and, after the meeting, Ping instructs the company secretary to email the announcement to ASX. a. Has Ping, Quentin or Roberta breached any directors or officers duties? If so, which ones? Give reasons for you answer. b. Would your answer in relation to Roberta be different if she had a degree in pharmacology?
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