Alicia, on the sale of the petrol station site to Batco Ltd, disclosed the profit of $220,000 to the board of directors. In the prospectus issued by Batco Ltd to the public, it was disclosed that the price Alicia had paid for the development site had been $700,000. No further reference was made to the property transaction. In the month prior to the sale of the property by Alicia to Batco Ltd, she was informed by the Sydney town clerk that Pitt Street was to be converted into a pedestrian mall and permanently closed to motor vehicle traffic. She was advised to immediately apply to the Sydney City Council for consent to have the property rezoned for other commercial purposes. Alicia did not do so, neither did she disclose this information to Batco Ltd.
Is Alicia a promoter ?
Refer to Corporate Law