Reference no: EM133229844

Edvin is a director and a member of Sommerland Ltd which is a company listed on the Australian Securities Exchange (ASX).  It is a very profitable company which owns and operates a chain of travel agents specializing in Scandinavian holidays.  Its profits fell over the COVID period, but it is starting to recover and make a profit as many people start to resume their overseas travels.

Last Wednesday Edvin attended a members-only meeting of Sommerland Ltd.  One matter that was discussed was a proposal that the company should expand its holiday operations to include cruises around other parts of Europe.  Edvin knows that the plans could be very popular with the company's Australian customers and so is incredibly excited about the proposal.  He rings his friend Omar later that day to tell him about the proposal.  He says to Omar that the shares could be a great investment and asks Omar to buy some shares for them to be owned jointly. 

Omar buys several shares in Sommerland Ltd the next morning.  Later that day he sees an announcement on social media and television about the company's proposed plans to offer European cruises to its customers.  Edvin rings him a day later to tell him to sell the shares immediately.  Unfortunately, when Omar sold the shares that night, the company's share price had dropped, and he makes a loss on the sale of the shares.

Question:  Advise Edvin if his conduct breaches the Corporations Act 2001 (Cth).  Does it matter that the sale of the shares did not result in a profit?  Please explain your answer using IRAC.