Australian insider trading laws prohibit a person from trading in securities whilst in possession of non-public, price-sensitive information. One of the essential elements of the insider trading offence is that the alleged insider must possess certain ‘inside information’. If the alleged insider trader is a company, how does that company ‘possess’ information? Must there be ‘knowledge’ or ‘awareness’ of the inside information, or is mere physical possession sufficient? The Corporations Act contains deeming provisions which impute certain knowledge of a company’s officers and directors to the company itself. General corporate law principles of agency may also apply to deem certain information to be within a company’s possession. How do these provisions and principles operate in the context of insider trading? Legal complexities associated with all of these issues will be examined in this article.
|Number of pages||17|
|Journal||Macquarie journal of business law|
|Publication status||Published - 2006|
Bibliographical notePublisher version archived with the permission of the Dean, Division of Law, Macquarie University, NSW, Australia. This copy is available for individual, non-commercial use. Permission to reprint/republish this version for other uses must be obtained from the publisher.
- insider trading in securities--law and legislation--Australia
- corporation law--Australia
- disclosure of information--law and legislation--Australia
- securities fraud
- Australian Corporations Act 2001
- Australian Securities and Investments Commission