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QUESTION # 1

Ethical theory places no one in a better position; it provides a number of responses to a particular

situation. In case of insider dealings ethical theory might ask that:

y Whether it is individuals choice to do so, if so, can he live with it? In case if he can thanconsequences whether are bad or good hell have to bear them.

y Whether everyone does it if everyone does it there might be no way of avoiding it. It is a customand one should also benefit from it. Like in Australia every insider should take advantage of the

privilege provided to him.

y Insider dealing is totally wrong and is considered illegal in USA and European markets soeveryone should avoid it in those markets. But in Australia there comes a question of individual

choice again if one considers it wrong than he should avoid it.

y Fourth reply is whether lesser evil provides for benefit of greater number of people or not. InAustralia the authorities will have to find answer to this question. If insider dealing provides forthe synergy of benefits than it should be allowed.

y Last option is no insider has the right to gain any extra benefit from any additional knowledgeabout markets and stocks. Every person should be on equal footings to reap the benefits of

speculation.

Before knowing the rights and duties we must know what is inside dealing. Under Australian law, insider

dealing occurs when a person trades in financial products whilst in possession of price-sensitive

information which is not publicly available.

Duties:

y The person having inside information should benefit only if the law allows.y If the nature of information is sensitive he must not disclose the information.y Only benefit when other people are not sufferingy Any person in possession of inside information may not disclose such information to any other

person unless such disclosure is made in the normal course of the exercise of his employment,

profession or duties.

Rights:

y Every person has the right to trade in securities so if a person gets any sort of info than he canuse it for his personal benefit provided it doesnt affect others.

y Must not be persecuted if info he has is used in legal framework.

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Question 2

Legal Rights and Duties

The directors of a corporation have certain legal duties and rights to the corporation.

Duties

1. Duty to act within powers2. Duty to promote the success of the company3. Duty to exercise independent judgment4. Duty to exercise reasonable skill and care and diligence5. Duty to avoid conflicts of interest6. Duty not to accept benefits from third parties7. Duty to declare the nature and extent of any interest in a proposed transaction or arrangement

know your rights as a director and/or shareholder in relation to the calling of meetings

8. Remember your contractual duties under your employment contract.

Rights

y Directors are not expected to foresee every possible problem. They are only required tocollect enough information on which to make a reasonably informed decision.

y Company directors have the right to legal protection from liability if, when they made adecision, the directors reasonably believed that decision was in the company's best

interests.

y Right to examine the corporation's accounting records, its shareholder list, its bylaws andother documents related to the corporation's existence and function.

Role Specific Rights and Duties

Duties

y To act in good faith towards the company.y To act only within their powers and use their powers only for purposes which benefit

the organization. Directors who act outside their powers bind the company to the

transaction but may be held personally liable if a loss results.

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y Not to use for personal gain any information acquired in their capacity as a director.y To act in the best interests of the company and to avoid a conflict between personal and

company interests.

y To exercise independent judgment in decision-making. A director who is appointed torepresent an interest group, for example employees, is nevertheless obliged to act in

the best interests of the company as a whole.

Rights

y Remuneration.y Job security.y Service contracts and compensation for loss of officey Directors are normally entitled to claim reimbursement of all reasonable,y Indemnity out of company assetsy The right to delegate powersy Rights concerning board meetings.

Rights and Duties of Students

y The right to form groups of their choosing to express their views, and receive fundingfor them.

y the right to speak freely, assemble, and demonstrate.y The right to due process and an impartial hearing in any disciplinary matter.y The right to participate in the governance of the institution.y The right to make rules and regulations and have primary responsibility for the

governance of student conduct.

y The right to do as they will, so long as they harm no other.

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Duties

Be interactive:

Our duties as a student are to behave, be responsible, and be respectful.

Behaving is quite important.

you miss a class, make up missed work quickly

Come to class prepared with books, completed assignments, pencil, notecards and binder.

Always do homework with care and thoroughness. Homework reinforces the day's lesson and is

necessary for you to retain grammar and vocabulary.

Make vocabulary note cards and use them. Play games with them. A few minutes each day

will make your vocabulary grow.

Be positive and enthusiastic; it's contagious.

Call or e-mail me if you don't understand or remember something. We all forget at times and

need reassurance.

Reread text explanations or review the video tape.