CORPORATIONS ACT 2001 No. 50, 2001 - SECT 1002G Prohibited conduct by person in possession of inside
CORPORATIONS ACT 2001 No. 50, 2001 - SECT 1002G
Prohibited conduct by person in possession of inside(1) Subject to this Division, where:
- (a)
- a person (in this section called the insider ) possesses information that is not generally available but, if the information were generally available, a reasonable person would expect it to have a material effect on the price or value of securities of a body corporate; and
- (b)
- the person knows, or ought reasonably to know, that:
- (i)
- the information is not generally available; and
- (ii)
- if it were generally available, it might have a material effect on the price or value of those securities;
- the following subsections apply.
(2) The insider must not (whether as principal or agent):
- (a)
- subscribe for, purchase or sell, or enter into an agreement to subscribe for, purchase or sell, any such securities; or
- (b)
- procure another person to subscribe for, purchase or sell, or to enter into an agreement to subscribe for, purchase or sell, any such securities.
(3) Where trading in the securities referred to in subsection (1) is permitted on the stock market of a securities exchange, the insider must not, directly or indirectly, communicate the information, or cause the information to be communicated, to another person if the insider knows, or ought reasonably to know, that the other person would or would be likely to:
- (a)
- subscribe for, purchase or sell, or enter into an agreement to subscribe for, purchase or sell, any such securities; or
- (b)
- procure a third person to subscribe for, purchase or sell, or to enter into an agreement to subscribe for, purchase or sell, any such securities.