The directors of a company operating in the i-gaming sector are negotiating a take-over. It is expected that following the take-over, the share price will rise substantially. One of the directors, Peter, shares this information with his brother, John, and encourages him to buy shares prior to the take-over. John, in turn, shares the information with his colleague, David, at work.Required:

(a) Explain the liability of Peter in sharing the information on the take-over with his brother John, and of John, who received this information; (7 marks)