hi there, i just need some advice on an assignment topic im having trouble with.
any ideas very very much appreciated.
heres a brief summary of the scenario.
company 123 share price has been falling. a director of company 123 (bob) approaches company abc and lends 10M. bob is also a majority shareholder of abc. his plan is to use the 10M to channel through the company and buy shares in company 123 to stabilise the share price. without consulting the board or shareholders, an unsecured 10M loan was to be given to company abc which was used to buy shares in company 123.
the share price of company 123 was stabilised.
what are the consequences of this transaction under the corporations act ?
any opinions is helpfull. thanks alot !