Dealing and market abuse

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Question 1.

Evaluate whether it is in the public interest to regulate against insider dealing and market abuse.

Question 2.

Alan has recently been appointed to the board of Directors of Riddell Limited, a film production company, as an executive director. The other directors of the company, Tomas and Louis (who are non-executive directors) inform Alan that they hope to appoint him shortly as managing director. After Alan's appointment as an executive director, Tomas and Louis pay little attention to the business preferring to concentrate on making commercials whilst Alan actively sets about negotiating for the making of several new films by the company. To this end he enters into a number of contracts for the purchase of scripts. Feeling confident about his position, Alan usually signs letters and documents in a way that indicates that he is managing director of the company. However, despite some initial success, Alan has not been able to maintain financial success for the company. Tomas and Louis have been dissatisfied with Alan's progress and have decided not to appoint him as managing director.

Reference no: EM133329744

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