THE CORPORATIONS LAW

CHAPTER 8 - THE FUTURES INDUSTRY

PART 8.7 - OFFENCES

Division 1 - Insider dealing

SECTION 1254   BODY CORPORATE PRECLUDED FROM DEALING WHEN OFFICER PRECLUDED  

1254(1)  [Body corporate precluded]  

Without prejudice to subsection 1253(3), but subject to this section, while an officer of a body corporate is precluded from dealing in a futures contract, the body is, for the purposes of this Part, also precluded from dealing in the futures contract.

1254(2)  [Body corporate not precluded]  

A body corporate is not, merely because of information that an officer of the body has, precluded by subsection (1) from dealing at a particular time in a futures contract if:

(a)  the decision to deal in the futures contract at that time was taken on the body's behalf by a person other than the officer;

(b)  the body had in operation at that time arrangements to ensure that the information was not communicated to that person and that no advice with respect to the transaction was given to that person by a person who had the information; and

(c)  the information was not so communicated and no such advice was so given.

1254(3)  [Futures contract concerning another body corporate]  

A body corporate is not, merely because of information that an officer of the body has, precluded by subsection (1) from dealing in a futures contract concerning another body corporate if the information:

(a)  was obtained by the officer in the course of performing duties as an officer of the first-mentioned body; and

(b)  relates only to a proposed dealing by the first-mentioned body in securities of, or a futures contract concerning, the other body.