QUESTION 2

Barry Badler is the CEO of HealthCo Pty Ltd ('HealthCo'), a major supplier of medical equipment in the Northern Territory. Barry also has a broad range of personal investments in a number of companies. These investments are managed by his superannuation trustee (his wife) and he has no direct control over the trust. Lately, his wife has been investing the trust funds into a number of medical supply companies including MediCall Ltd('MediCall'), in which she has built up a 10% stake. She has not told Barry about her investment strategy.

In early August, HealthCo considers a tendering process for one of its major supply contracts. MediCall lodges a tender bid and Barry is on the tender committee. As a result of Barry's recommendation, MediCall wins the tender contract.

In October, Barry takes over control of his superannuation trust and builds up a further stake in MediCall so that his trust controls 19% of the company. Barry then pressures the company to appoint his wife to the board of directors.

REQUIRED:

Advise Barry of his obligations under the Corporations Act arising from his dealings with MediCall. Were his actions in August and October in breach of the no-conflict rule?