DIRECTORS of the Allied Group meet this week to consider whether they should take legal action against any group or individual following the publication of the Allen report on the company's financial transactions. One of the recommendations made by inspector Nicholas Allen in his full report was that Allied's board should consider whether they should take legal action on the basis of its findings. The investigations into Allied by Mr Allen threw up evidence of widespread malpractice, market manipulation, concealment of losses and matters prejudicial to minority shareholders. Mr Brian O'Connor, who was appointed chief executive after the investigation began, confirmed yesterday that the board would be taking legal advice at a series of meetings to be held tomorrow and on Wednesday. Mr O'Connor said the directors had decided earlier in the year, on the evidence then available, that there was no legal action they could take. However, he revealed that the situation was being reviewed again in line with Mr Allen's recommendations - which were not published in the abridged report available to the public, but were contained in the full document sent to interested parties. There are also expected to be meetings between directors and officials of the stock exchange this week. This follows meetings held last week with the Securities and Futures Commission, which Mr O'Connor said was still studying the report. Meanwhile, the two groups said they would keep in touch.