Sid is a director of two listed public companies in which he has substantial shareholdings: Trend Co and Umber Co.The annual reports of both Trend Co and Umber Co have just been drawn up although not yet disclosed. They show that, Trend Co has made a surprisingly big loss and that Umber Co has made an equally surprising big profit. On the basis of this information Sid sold his shares in Trend Co and bought shares in Umber Co. He also advised his brother to buy shares in Umber Co.Vic who is also a shareholder in both companies sold a significant number of shares in Umber Co only the day before its annual report was published.Required:
(a) Analyse the above scenario from the perspective of the law relating to insider dealing; (8 marks)
