After several months of negotiations, the CEO of BIG Pty Ltd made the long-awaited announcement to board members that BIG Pty Ltd would be buying Melbourne based company, YAY Pty Ltd for $25m. The following persons were present at the meeting: Helen and Liam (Company Directors) and Tammy (Receptionist taking meeting minutes). News of the take-over would not be released to the public until the following week.
(a) Assume Helen owns 50,000 shares in YAY Pty Ltd . Discuss whether she would be breaching any duties if she makes a secret profit of $500,000 from the takeover. What can Helen do to avoid breaching any duties?

answer structure

Issue: Whether Helen would breach any duties…
Rule: According to Hospital Products Ltd v US Surgical Corp…
Furthermore: According to Aberdeen Railway Co v Blaikie Bros…
Analyze: Here, the facts tell us…

Conclusion: Clear that Helen would be breaching Duty __ … (remember to also mention what she can do to avoid the breach)

Answer rating: 100% (QA)

Solution Issue In the given situation BIG Pty Ltd is buying YAY Pty Ltd and Helen being a director in the purchasing company has some fiduciary duties ... View the full answer