Legal issues for managers - ILAC assignment Essay

Legal issues for managers - ILAC assignment - Essay Example This was even with the fact that Security One Pty Ltd was not well prepared to carry out the task. After his suggestion was accepted and SIL agreed to use Security One Pty Ltd for the consultation, he informed his wife, thus making it possible for his wife to have privileged information which allowed her to buy more shares in the Security One Pty Ltd and use this as a way to enrich herself. Yet, in all this, Paul never informed the other members about the possible conflict of interest. Paul also hired employees from an informal organization which led to the firm incurring huge losses after the employees form the informal organization stole property and hard cash from SIL. In hiring the employees, he did not carry out a due diligence and only did a simple web search fro the organization. This lack of delicate care led to him not being able to know that the organization was not a formal one and that it was run by criminals. Kim gave her sister in law privileged information about the proposal to create the new power plant. Using this information, the sister in law, Judy was able to buy purchased $50,000 worth of shares in the company. Karen, despite warning by the CEO, went ahead and made decision to invest more money even after the CEO had warned that an increase in the price of coal would reduce SIL’s market competitiveness and would lead to losses. Even after the CEO’s perditions of the price of coal going up came to be true, she still went on and continued to invest more money. This led to many losses. Conclusion Under the Corporations act 2001, an officer of a firm is supposed to act in the best inters of the firm. In cases where the officer has a conflicting interest in the firm, he or she should be able to look at this issue and be able to refrain from making company decisions. Paul was in a position where he had conflicting interests with the firm he was working for. He should have told