Question

r. B the financial Manager of ABC Company purchases 100 shares of the Company just before the rights issue was announced. Is the behaviour of the manager ethical? What would you do as a legal advisor of the company?

Answer 1

Answer:

yes the behaviour of the manager is unethical because right issue is a method of raising additional finance from existing shareholders by offering securities to them prorate basis l.e.g -givem them a right to a certain number of shares in proportion to the shares they are holding

2.as a legal advisory of the company,I advice that he should not be given that right of extra shares

3.as a manager his responsibilities is to develop and analyse information..