Reference no: EM131986989

Question - Barry Badler is the CEO of HealthCo Pty Ltd, a major supplier of medical equipment in Queensland. Barry also has a broad range of personal investments in a number of companies. These investments are managed by his superannuation trustee (his wife) and he has no direct control over the trust. Lately, his wife has been investing the trust funds into a number of medical supply companies including MediCall Ltd, in which she has built up a 10 per cent stake. She has not told Barry about her investment strategy.

In early August, HealthCo considers a tendering process for one of its major supply contracts. MediCall lodges a tender bid and Barry is on the tender committee. As a result of Barry's recommendation, MediCall wins the tender contract.

In October, Barry takes over control of his superannuation trust and builds up a further stake in MediCall so that his trust controls 19 per cent of the company. Barry then pressures the company to appoint his wife to the board of directors.

Considering only the October events leading to Barry's wife's directorial appointment, discuss whether this is a breach of Barry's directors' duties and focus on Barry's disclosure obligations. Assuming that disclosure is an appropriate strategy, draft the appropriate disclosure minute for Barry.