AVZ 0.00% 78.0¢ avz minerals limited

I didn't notice anyone answer your questions, so I'll try to...

  1. 3,463 Posts.
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    I didn't notice anyone answer your questions, so I'll try to help to the best of my knowledge.
    Firstly, Mr Chen doesn't need to physically attend the board meeting to know the cash position of the company. Company directors have the right to access books and records at any time. This isn't limited to formal board meetings.
    Secondly, Non attendance of meetings does not indicate the absent director has not subsequently been given a copy of the minutes or any information presented to the board. It would be irregular for Mr Chen not to receive that information in a timely manner. While I'd consider Mr Chen's record of attendance poor form, he isn't considered an independent director. The attendance of independent directors is of more importance for corporate governance standards.
    Thirdly If Mr Chen is made aware of price sensitive privileged information, any transactions made personally or through the company he represents, would most likely be considered insider trading. This isn't just restricted to the "closing of the books" blackout period.
    Your financing offer example is an interesting one though. As a substantial holder, the CR offer would need to be approved by shareholders. By the time of a vote on the resolution, the sensitive information would necessarily be made known to the members. IMHO this would not be considered insider trading.
    Its an area covered by the Corporations Act and AVZ would also have an internal policy regarding share trading for directors and employees.
    Please read my comments as speculative entertainment and not legal or financial advice.
    Hope it helps
    AIMHO DYOR

 
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