FozThis is my non-expert opinion re interpretation of the...

Foz

This is my non-expert opinion re interpretation of the Corporations Act.

If Larry's family members were shareholders when Larry joined the company, Larry (IMO) should have disclosed their holding (particularly shares held in a Family Trust) as "indirect" interest when he lodged the "initial director's interest notice" to the ASX.

I could be wrong but as I understand (refer to link below), directors should disclose both direct and indirect interests to the ASX.

http://www.asic.gov.au/asic/asic.nsf/byheadline/Notifying+the+ASX+about+directors'+interests+in+company+securities?opendocument

extract:

When do you have 'a relevant interest'?

The basic rule is that you have a relevant interest in a security if you are the holder of the security or if you have the power to control the voting or the disposal of the security. You may have a relevant interest in securities even where you do not directly or indirectly own the securities. A family trust may own the securities. Alternatively your spouse or children may be the registered holder of the securities. Or the securities may be held by a company in respect of which you have direct or indirect control over 20% of the voting power.

(Further details about the types of interest which attract s205G are set out at the end of this Information Sheet.)