NCJ Number
122830
Date Published
1987
Length
203 pages
Annotation
This two-volume report recommends changes in New Zealand's laws dealing with insider trading in securities.
Abstract
Volume one of the report enumerates and discusses the legal and economic theories justifying regulation of insider trading, defines terms, and proposes sanctions and remedies. Specific legislative recommendations include requiring that substantial shareholders report their holdings, confering the right to sue for compensation on those who suffer losses from insider transactions, disqualifying insider traders from holding offices in their companies, and revoking stockbrokers' licenses when they have traded as insiders. Additional proposed legal remedies include class action legislation. The second volume of the report contains footnotes to the text of the report (volume one), the New Zealand Stock Exchange Guidelines for Securities Transactions by Directors of Companies, extracts from securities legislation enacted in Australia, Canada, Great Britain, and the United States, and a bibliography.