A hypothetical:
A small capbusiness is struggling.
The chair –who happens to be the founder and still owns a significant share of thebusiness - believes they know the way to turn things around.
Rather thanproposing this strategy through the board they elect, at least in part on thebasis of their detailed knowledge of the business as a board member, to make a bid– taking advantage of the depressed share price - to take the company privateso they can implement the strategy for their own benefit.
Question
oes this constitute dereliction of Directors Duties? Is it actionable under the Corporations Act?
Answers of1000 words or less by next class please...
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Last
73.5¢ |
Change
-0.035(4.55%) |
Mkt cap ! $268.5M | |||
| Open | High | Low | Value | Volume |
| 75.5¢ | 78.0¢ | 73.5¢ | $55.92K | 74.50K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 3437 | 74.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 77.0¢ | 4911 | 1 |
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| Last trade - 11.15am 16/06/2025 (20 minute delay) ? |
| PGH (ASX) Chart |