Advice on irvings possible criminal liability

Assignment Help Business Law and Ethics

Reference no: EM133255987

Case: You set up the company for the clients and they go away happy. Each of them is appointed director. Misha and Tanya have 40% of the shares, but Irving only has 20% because he was only a junior partner and made a smaller capital contribution when the partnership was established. Three years later, they make another appointment to see you. The company has become so successful they are thinking of floating on the stock exchange. They seek a BRIEF SUMMARY of the legal requirements for making a large share offer to the public.

a) You also need to give them a summary of the disclosure and reporting requirements for public companies.

b) The company is successfully floated and shares are issued to the public. A year later, Misha and Tanya come and see you on their own. They, along with Irving, remain as directors of the company. They are concerned that Irving may be passing confidential information to friends about the company's contractual negotiations so that the friends can trade profitably in the company's shares or get relatives to trade in the company's shares. You need to give Misha and Tanya advice on Irving's possible criminal liability for insider trading and also any possible breaches of his directors' duties. You will want to support your answer with some case law.

Reference no: EM133255987

Questions Cloud

Explain explicit and implicit : Please explain the following sentences. It's okay if it's only briefly.

Compare and contrast voluntary and involuntary dissolutions : Compare and contrast voluntary and involuntary dissolutions. Include events and approvals that precede the dissolution, and describe what happens

Development of young learners with exceptionalities : How does orthographic mapping supports the reading and writing development of young learners with and without exceptionalities

Development of reading and spelling skills : What is the connection between orthography and the development of reading and spelling skills?

Advice on irvings possible criminal liability : summary of the disclosure and reporting requirements for public companies and advice on Irving's possible criminal liability for insider trading

Which perspectives are voiced within the article : From which perspective is the article told? Which perspectives are voiced within the article?

Because i could not stop for death : Emily Dickinson is well-known for what many consider a strange or even morbid fascination with death. Dickinson certainly did not view death in the same way tha

Does nazim owe a duty of care to kim and/or andy : Does Nazim owe a duty of care to Kim and/or Andy? Explain your answer by making reference to relevant case law.

Establish a bond between audience and character : According to lecture materials, what are the three techniques television storytellers use to establish a bond between audience and character?

User Account

All Pages