Essay Title: 

Business Association Research Essay (Australia law research essay)

March 24, 2016 | Author: | Posted in law

Who , if anyone , should be entitled to compensation for insider trading How should damages be assessed

Contents

S .No THEADING GPAGE NO

1 INTRODUCTION

3

2 INSIDER TRADING UNDER AUSTRLIAN CORPORATIONS ACT 2001

4

2 .1 Insider 5

2 .2 The Meaning of Financial products 6

2 .3 Insider is prohibited to do the following : 7

2 .4 The meaning of Information 8

2 .5 The meaning of inside information ‘ 8

2 .6 Price sensitive ‘ information . 9

3 . Who is entitled to compensation and the [banner_entry_middle]

damages are assessed for insider trading activities under Australian Corporation Act

11

4 Case Laws on Insider Trading in Australia : 16

5 Other Case Laws

19

6 CONCLUSION

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7 BIBILIOGRAPHY 25 1 . INTRODUCTION

Generally the law relating to Insider Trading is regarded as an extremely complicated and difficult area of the corporate law Australian Insider trading laws have been regarded by academics and judges as extremely complex , ambiguous and legalistic . Further it has been drafted in a difficult language which restricts its interpretations .There is a general outlook by the academics , legal practioners that the insider law should be more criminalized and how to find out the modalities to prosecute and convict the inside traders as there was very few decided cases in Insider trading in Australia

Insider trading said to be occurred when someone has information that is unavailable to the public yet . Thus the information gathered through the insider trading sources is deployed to gain from trading in a Company ‘s publicly traded stock . United States is the first country to legislate a law on insider trading as early as 1934 . Other countries were unenthusiastic to regulate the insider trading until 1980 .In UK , there were no criminal proceedings against inside trading until 1980 , in Japan until 1988 and in Australia , the same was in force till 1970 .However , only 39 countries have imposed criminal prosecution for the Insider trading

In 1990 , other countries started to realize the importance of the Insider trading and the number of countries which enacted law on insider trading swells to 87 in 2000 from just 34 countries prior to 1990 .In U .S .A , the insider trading was protected by the Securities and Exchange Commission (SEC ) which was established under the Securities Exchange Act (1934 . Any insider trading practice is being considered as unfair practice to the interest of investors

2 . INSIDER TRADING UNDER AUSTRLIAN CORPORATIONS ACT 2001

The Corporation Act , 2001 (CA ) contains Securities Law which deals with the Insider Trading

Under the provisions of the Australian Securities Law , a person knowingly in custody of inside information may not subscribe for , buy or sell (or induce someone else to subscribe , procure for , buy or sell securities or tip ‘ another person who then trades . In addition , if that person is a director or employee of a company , and the inside information came into his or her possession in the course of execution or performance of his or her duties in that capacity , the Company itself… [banner_entry_footer]

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