XN000022-1991-03-26 — Page 6

TUESDAY, MARCH 26, 1991

5

TECHNICAL AMENDMENTS TO INSIDER DEALING LAW PROPOSED

A SHORT BILL WILL BE GAZETTED ON THURSDAY PROPOSING AMENDMENTS TO THE SECURITIES (INSIDER DEALING) ORDINANCE.

TECHNICAL

THE BILL SEEKS TO CLARIFY THE DUTY OF OFFICERS OF A CORPORATION

A CORPORATION, THE

GOVERNMENT IN RELATION ΤΟ INSIDER DEALING BY SPOKESMAN SAID TODAY (TUESDAY).

THE ORDINANCE, OFFICERS

+

* INSIDER BETWEEN

"AS THEY NOW STAND, SECTIONS 13, 16 AND 24 OF TAKEN TOGETHER, IMPOSE A BLANKET REQUIREMENT THAT COMPANIES' ANY ENGAGE IN COMPANIES DO NOT MUST

THAT ENSURE

THEIR DEALING'. HOWEVER, BECAUSE THE ORDINANCE MAKES A DISTINCTION

A DEALING'

DIFFICULTY ARISES, 'INSIDER DEALER' AND INSIDER EXPLAINED.

"TO BE AN 'INSIDER DEALER' IS, IN EVERY CASE, CULPABLE.

IS, BY DEFINITION, PERSON WHO ENGAGES IN CONDUCT WHICH DEALING' MAY, IF EXCUSED BY SECTION 10, NOT BE CULPABLE.

HE

BUT A 'INSIDER

COMPANIES! SECTION 10 THE INTENTION

"THUS,

AS PRESENTLY WORDED, THE PROVISIONS REQUIRE OFFICERS TO PREVENT CONDUCT WHICH MAY, IF COVERED BY THE EXEMPTIONS, NOT BE CULPABLE. THAT DOES NOT REFLECT BEHIND THE LEGISLATION," HE SAID.

HIS **WE

DO NOT BELIEVE THAT AN OFFICER IN TECHNICAL BREACH OF

MADE BY THE DUTY WOULD IN REALITY RUN A RISK OF HAVING AN ORDER

** THE SPOKESMAN POINTED OUT. INSIDER DEALING TRIBUNAL AGAINST HIM,

"NEVERTHELESS,

FOR

ANY STATUTORY WE DO ACCEPT THAT THE TERMS OF

OTHERWISE, IT IS DIFFICULT DUTY SHOULD BE STATED UNAMBIGUOUSLY. COMPANIES' OFFICERS TO BE CERTAIN ABOUT THEIR DUTIES.'

"

THE BILL PROPOSES THEREFORE TO AMEND SECTIONS 13 AND 24 TO MAKE FROM IT CLEAR THAT THE OFFICER'S DUTY IS TO PREVENT THE CORPORATION

BY THE PERPETRATING ANY ACT 'WHICH MIGHT CAUSE IT TO BE IDENTIFIED TRIBUNAL AS AN INSIDER DEALER'.

THE

BILL 1991

IS

DEALING) (AMENDMENT} (INSIDER SECURITIES EXPECTED TO BE INTRODUCED INTO THE LEGISLATIVE COUNCIL ON MAY 1.

/6..