Insider trading has received increased regulatory scrutiny in the Malaysian market over the past decade, posing several important questions for those who are privy to confidential information.
Some of the most common issues facing directors of public listed companies (PLCs) is determining:
i. What are the specific rules that govern their share trading?
ii. When can directors buy or sell the shares of companies on whose boards they sit?
iii. Can a director be in breach of insider trading laws even if he or she individually does not trade but instead shares confidential information with others?
iv. Are directors the only ones at risk of being in breach of insider trading prohibitions?
These are issues that often face those who deal with inside information, particularly directors and company advisers such as lawyers and investment bankers. Thus, what can directors and other corporate insiders do to ensure that they stay on the right side of the law? This Update will address these issues.
For more information, click here to read the full Legal Update.
