Fred is a director on the board of XYZ Pty Ltd. Bibek has approached Fred to...

 

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Fred is a director on the board of XYZ Pty Ltd. Bibek has approached Fred to tell him that he (Bibek) wants to invest in XYZ Pty Ltd and that he will give Fred a 5% commission if the investment is approved by XYZ Pty Ltd. Fred and Bibek decide not to tell the other directors of XYZ Pty Ltd about the proposed commission. If Fred accepts Bibek's offer will he have transgressed any corporate governance guidelines? Explain Fred is a director on the board of XYZ Pty Ltd. Bibek has approached Fred to tell him that he (Bibek) wants to invest in XYZ Pty Ltd and that he will give Fred a 5% commission if the investment is approved by XYZ Pty Ltd. Fred and Bibek decide not to tell the other directors of XYZ Pty Ltd about the proposed commission. If Fred accepts Bibek's offer will he have transgressed any corporate governance guidelines? Explain

Answer rating: 100% (QA)

XYZ is a private company If XYZ is a public company then it is called insider tra... View the full answer