Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Insider Trading Decision Good News


Insider Trading Decision Good News

The Court of Appeal's latest insider trading decision is good news, ACT Associate Commerce Spokesman Stephen Franks said today.

"The Court upheld orders allowing investors trying to exercise rights to sue for insider trading at the expense of the company involved. They allege insider trading, and tipping by persons from the former Fletcher Challenge Group, in relation to the takeover of Southern Petroleum," Mr Franks said.

"Five Judges in the Court of Appeal have said that the words of our insider trading statute mean what they say. The message is that deep pocket defendants cannot rely on burning off complaining investors by dragging out and fighting every point at a preliminary stage.

"The Court also held that the complainants' costs to be reimbursed include the costs of getting the Court's leave to proceed at the cost of the company, now a subsidiary of Shell. So far, these costs exceed $500,000.

The trustees of the Business Integrity Trust (established with proceeds of the action against former Fletcher Challenge Chairman Kerry Hoggard) had agreed to help fund this case if the investors were forced to appeal to the Privy Council. I am very pleased that the costs award in this case will reimburse the complainants, so the Trust's assistance is not likely to be needed in the near future.

"That it should cost more than half a million dollars to reach this stage is scandalous. If the Government had not been dithering, and the law had been fixed quite simply many years ago, that money would not have been wasted. But at least the costs award now will mean they can carry on.

Regrettably, the decision does not give a clear steer on how to fix some of the loopholes and tyrannical features in our insider trading law. Fisher J in the High Court was very blunt in his criticisms of the law (`the drafter must have nodded off').

"Given the Government's dithering over insider trading law and its recent move to bring in features of the even more unsuccessful Australian law, it would have been helpful if the Court had used the opportunity to recommend a coherent property rights theory to pull together the conflicting strands in our statute. Nevertheless, as far as it goes, this is a very welcome judgment," Mr Franks said.


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>

ALSO:

Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>

ALSO:

Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>

ALSO:

Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>

ALSO:

With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>

ALSO:

Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news