Maria is a shareholder and director in MainTel, a public cell phone company operating in Botswana, which has recently experienced severe losses in profits. She is aware that MainTel is engaged in confidential negotiations to take over a smaller public cell service provider in the market, Mogalacom. Should the takeover be successful, MainTel’s market share in Botswana will increase to 70% resulting in greater returns for shareholders.Kopano is a shareholder in MainTel and has approached Maria for advice on whether he should keep or sell his shares, given a recent drop in the MainTel share price. Kopano is concerned about suffering more losses. Maria informs him that he should sell his shares and offers to buy the shares from him.Shortly after selling his shares to Maria, Kopano reads about MainTel taking over Mogalacom in the local press. Kopano also notes a significant increase in MainTel’s share price. Kopano eventually realises that Maria was aware of the impending takeover when she purchased the shares from him.Kopano wishes to know if Maria’s conduct is wrongful and if there are any remedies available to him in law.Required:Advise Kopano. (10 marks)
