ExpertACCA · Question 24 · Corporate fraudulent and criminal behaviour
Section A
An employee of a publicly listed mining company accidentally overhears a confidential board meeting discussing a massive, unannounced gold discovery. The employee immediately buys shares in the company before the news goes public. Under the Criminal Justice Act 1993, which of the following is a valid defense to a charge of insider dealing?
Section A
An employee of a publicly listed mining company accidentally overhears a confidential board meeting discussing a massive, unannounced gold discovery. The employee immediately buys shares in the company before the news goes public. Under the Criminal Justice Act 1993, which of the following is a valid defense to a charge of insider dealing?
Answer options:
The employee did not actively seek out the information but only overheard it accidentally.
The employee can prove they would have bought the shares anyway, even without the information.
The employee only bought a small number of shares, resulting in a minor profit.
The employee is not a director or senior manager of the company.
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