Corporate liability for insider trading : how does a company have the necessary ‘mens rea’?

Research output: Contribution to journalArticlepeer-review

Abstract

Corporations are legal persons caught by Australian insider trading laws. As a criminal offence, insider trading does not occur without a fault element or ‘mens rea’ on the part of the alleged offender. Where the alleged offender is a corporation, how is the fault element for insider trading to be proved? The insider trading offence requires specific knowledge — knowledge that the inside information possessed is not generally available, and knowledge that the inside information is likely to be price-sensitive. How can a corporation been shown to have such knowledge? These issues have never been explicitly tested judicially, but will be considered in detail in this article.
Original languageEnglish
Pages (from-to)266-281
Number of pages16
JournalAustralian Journal of Corporate Law
Volume24
Issue number3
Publication statusPublished - Jul 2010
Externally publishedYes

Keywords

  • insider trading
  • corporate liability
  • mens rea
  • corporations law

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