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Zed plc holds its board meetings on the fifteenth day of each month. At the meeting on 15 June, the board discussed a potential contract with RST Ltd. On 1 July, Lucy, a director of Zed plc, bought shares in RST Ltd. On 25 July, Zed plc contracted with RST Ltd.
When should Lucy have declared her interest to the board of Zed plc?
A. 15 June
B. 1 July
C. 15 July
D. 15 AugustHi Mike
For this questions I chose A as my answer. The mark scheme stated that B is the correct answer and explained that the declaration should be made at the earliest opportunity. I don’t understand why A isn’t correct.
Is it because the directors only discussed about RST Ltd on the 1st of July?
Yes, there’s nothing in the question to suggest that Lucy had any knowledge at all of Zed’s interest in RST. In fact, she didn’t buy her shares until 16 days after the matter was discussed at Zed’s board meeting and that suggests that, before that date, she had no established interest in RST.
Clearly the |July and August options are not applicable. Even if there had been an option of 30th June as in “Tomorrow I intend to buy some shares in RST” would not necessarily have been notifiable – because, until the actual purchase of those shares, she always had the opportunity to change her mind.
OK?
I understand what you mean in the first paragraph of your explanation but not the 2nd paragraph.
Could you please explain it again?
Hi again
You yourself correctly pointed out that ‘the declaration should be made at the earliest opportunity’
I believe that I have established that 15th June is not appropriate as the earliest date.
As for the 15th July and 15th August options, these clearly would not satisfy ‘the declaration should be made at the earliest opportunity’
So that leaves us with option B
Is that better?
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