The company’s constitution – some vital considerations
Legislation has altered the law on insider dealing to take account of the EC Directive on Insider Dealing. There is no civil remedy for insider dealing. Various criticisms have been made of the UK law on insider dealing. The market abuse provisions of the Financial Services and Markets Act 2000 provide for civil penalties in the form of injunctions and restriction orders. Under the Powers of the Criminal Courts Act 1973 and, in Scotland, the Criminal Justice Act 1980, any victim of a criminal offence may be awarded compensation under the Act. A fourth criticism made of the Act is that enforcement is haphazard. On 20 October 2011, the European Commission published proposals to replace MAD with a Regulation on insider dealing and market manipulation and a directive on criminal sanctions to deal with market abuse. Criminal sanctions including imprisonment may be applied where an insider deals in securities of a quoted company on the basis of inside information.