Deleted user
Lawyer
posted 2 years ago
In response to your question. The mere trading of a general manager of a company with the company as such in and of itself does not give rise to criminal liability to the extent that the general manager does not use inside information that is not in the public domain or acts to the detriment of the company or of it's clients. More needs to be known exactly as to what transpired before any conclusions can be drawn from the fact scenario. In order to avoid an appearance of unethical or immoral trading the company is well advised to have a series of guidelines which govern the trading of employees with the company and it would be wise for the general manager to disclose exactly which transactions he engaged into and in particular the volume of the transactions and whether or not he owns shares in the company. If we are talking about high volume transactions which may have impacted on the value of the company and hence the share price we are borderline insider trading which is illegal under Canadian law. Also it is not clear whether the general manager also is a director of the company which may give rise to her or him owing a fiduciary duty to the company. So without jumping to conclusions more needs to be known to properly assess the legal ramifications of this conduct. Hope that this was helpful thank you very much and have a great day.
