XN000022-1973-08-01 — Page 8

Wednesday, August 1, 1973

E

Requiring all companies to provide full details

of their assets and liabilities, and revenue and

expenditure, largely along the lines of British law.

Continuing the present exemption of private companies

from filing annual accounts,

On "insider dealings", the Committee states that strong legislation

is required to curb this practice whereby, in order to make quick profits,

unfair advantage is taken by persons with inside information, which has

not been disclosed to shareholders or the public in general.

Insider dealings, and also the passing on of inside information,

should therefore be made a criminal offence, it says.

The Committee further recommends that any insider who has entered

into a share transaction, using inside "price-sensitive" information, should

be liable to compensate a person who suffers from his action unless the

information was also known to that person. The same civil liability should

apply where a person makes use of inside information passed on to him by

an insider.

Courts should be empowered, it says, to order persons having

information with respect to suspected dealings to disclose such information.

However, the Committee is divided on the question of compelling

directors and major shareholders of quoted companies to disclose their

holdings and dealings.

The majority ..................