ABSTRACT
This chapter explains the resulting recommendations and proposals for the reform of Australian insider trading laws. It analyses the flaws in the legislative regime. A direct model of corporate liability would be utilised, so that the possession of information, knowledge and conduct of the relevant officer, employee or agent would be taken to be that of the corporation. The uncertainties concerning the manner in which the elements of insider trading are applied to corporations are further exacerbated by the fact that the primary defence to insider trading for corporations – the Chinese Wall defence – is expressed in vague terms which appear to have inconsistencies with the statutory provisions. The use of clear language would avoid any difficulties of interpretation and, in the interests of clarity and certainty, a more definitive regime is required for corporate criminal and civil liability for insider trading.
