Company Securities Trading Policies: An Empirical Study

Company and Securities Law Journal, Vol. 30, No. 1, pp. 55-60, 2012

U of Melbourne Legal Studies Research Paper No. 579

9 Pages Posted: 22 Feb 2012 Last revised: 30 Sep 2012

See all articles by Ian Ramsay

Ian Ramsay

Melbourne Law School - University of Melbourne

Chander Shekhar

University of Melbourne; Financial Research Network (FIRN)

Date Written: February 21, 2012

Abstract

On 1 January 2011, the Australian Securities Exchange (ASX) introduced into its listing rules a requirement for listed companies to adopt and disclose a policy relating to trading in the company’s securities by key management personnel during prohibited periods. The introduction of the requirement followed a report of the Corporations and Markets Advisory Committee which recommended that there should be “a more prescriptive approach to the trading by directors and executive officers in the securities of their company during sensitive periods”. However, little is known about the securities trading policies of companies prior to the introduction of the listing rules requiring such policies. In this paper the authors present the results of a study of the securities trading policies of listed companies prior to the introduction of the ASX listing rules in order to gain insight into (1) the extent to which listed companies voluntarily adopted securities trading policies, and (2) the content of these policies and the types of restrictions contained in them.

Suggested Citation

Ramsay, Ian and Shekhar, Chander, Company Securities Trading Policies: An Empirical Study (February 21, 2012). Company and Securities Law Journal, Vol. 30, No. 1, pp. 55-60, 2012; U of Melbourne Legal Studies Research Paper No. 579. Available at SSRN: https://ssrn.com/abstract=2009106

Ian Ramsay (Contact Author)

Melbourne Law School - University of Melbourne ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia
+61 3 8344 5332 (Phone)

HOME PAGE: http://law.unimelb.edu.au/about/staff/ian-ramsay

Chander Shekhar

University of Melbourne ( email )

185 Pelham Street
Carlton, Victoria 3053
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

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