In January the board of directors of Huge plc decided to make a takeover bid for Large plc. After the decision was taken, but before it is announced, the following chain of events occurs:

1. Slye, a director of Huge plc, buys shares in Large plc.
2. Slye tells his friend Mate about the likelihood of the takeover and Mate buys shares in Large plc.
3. At a dinner party Slye, without actually telling him about the takeover proposal, advises his brother Tim to buy shares in Large plc and Tim does so.

REQUIREMENT

Which of the following parties have committed to the offence in respect of insider dealing?

In January the board of directors of Huge plc decided to make a takeover bid for Large plc. After the decision was taken, but before it is announced, the following chain of events occurs:

1. Slye, a director of Huge plc, buys shares in Large plc.
2. Slye tells his friend Mate about the likelihood of the takeover and Mate buys shares in Large plc.
3. At a dinner party Slye, without actually telling him about the takeover proposal, advises his brother Tim to buy shares in Large plc and Tim does so.

REQUIREMENT

Which of the following statements regarding Tim is correct?

Five years ago, Del and Rod formed a limited company, Trot Ltd. The pair were the company's only directors and shareholders. The company was initially profitable but started making losses in its third year. Rod thought that the business should be liquidated at this point but Del persuaded him that the business should continue. Del continued to run the company but Rod, although he retained his position as a director, decided to focus his attention on another business venture.

Trot Ltd continued to make substantial losses, but Del produced fake company accounts to hide the company's debts. Eventually the scale of the losses became too large to hide and the company went into liquidation.

REQUIREMENT

Under which of the following Acts is insolvency or administration required for the offense of fraudulent trading to be actionable?

Five years ago, Del and Rod formed a limited company, Trot Ltd. The pair were the company's only directors and shareholders. The company was initially profitable but started making losses in its third year. Rod thought that the business should be liquidated at this point but Del persuaded him that the business should continue. Del continued to run the company but Rod, although he retained his position as a director, decided to focus his attention on another business venture.

Trot Ltd continued to make substantial losses, but Del produced fake company accounts to hide the company's debts. Eventually the scale of the losses became too large to hide and the company went into liquidation.

REQUIREMENT

Under which of the following Acts is Insolvency or administration not required for the offense of fraudulent trading to be actionable?

Five years ago, Del and Rod formed a limited company, Trot Ltd. The pair were the company's only directors and shareholders. The company was initially profitable but started making losses in its third year. Rod thought that the business should be liquidated at this point but Del persuaded him that the business should continue. Del continued to run the company but Rod, although he retained his position as a director, decided to focus his attention on another business venture.

Trot Ltd continued to make substantial losses, but Del produced fake company accounts to hide the company's debts. Eventually the scale of the losses became too large to hide and the company went into liquidation.

REQUIREMENT

Who committed the offence 'Fraudulent trading under s 213 Insolvency Act 1986'?

Five years ago, Del and Rod formed a limited company, Trot Ltd. The pair were the company's only directors and shareholders. The company was initially profitable but started making losses in its third year. Rod thought that the business should be liquidated at this point but Del persuaded him that the business should continue. Del continued to run the company but Rod, although he retained his position as a director, decided to focus his attention on another business venture.

Trot Ltd continued to make substantial losses, but Del produced fake company accounts to hide the company's debts. Eventually the scale of the losses became too large to hide and the company went into liquidation.

REQUIREMENT

Who committed the offence 'Wrongful trading under s 214 Insolvency Act 1986'?

Ian is an accountant, and one of his clients is Jet, who runs an illegal operation as well as some other legitimate businesses. Jet approached Ian for advice as to how he should deal with the gains he makes from the illegal operation. Ian suggested that, rather than try to use his existing legitimate businesses to disguise the source of the money, Jet should use his legally made money to buy the local football club, Kickers, with the intention of passing his gains from the illegal operation through the club's accounts.

Jet accepted the proposal and appointed Ian as Kickers' finance director and together they passed the illegal money through the football club.

REQUIREMENT

Which TWO of the following statements concerning the offence of money laundering are correct?

Ian is an accountant, and one of his clients is Jet, who runs an illegal operation as well as some other legitimate businesses. Jet approached Ian for advice as to how he should deal with the gains he makes from the illegal operation. Ian suggested that, rather than try to use his existing legitimate businesses to disguise the source of the money, Jet should use his legally made money to buy the local football club, Kickers, with the intention of passing his gains from the illegal operation through the club's accounts.

Jet accepted the proposal and appointed Ian as Kickers' finance director and together they passed the illegal money through the football club.

REQUIREMENT

Which money laundering offences has Ian committed?

Ian is an accountant, and one of his clients is Jet, who runs an illegal operation as well as some other legitimate businesses. Jet approached Ian for advice as to how he should deal with the gains he makes from the illegal operation. Ian suggested that, rather than try to use his existing legitimate businesses to disguise the source of the money, Jet should use his legally made money to buy the local football club, Kickers, with the intention of passing his gains from the illegal operation through the club's accounts.

Jet accepted the proposal and appointed Ian as Kickers' finance director and together they passed the illegal money through the football club.

REQUIREMENT

Which money laundering offences has Jet committed?

Sid is a director of two listed public companies in which he has substantial shareholdings: Trend plc and Umber plc.

The annual reports of both Trend plc and Umber plc have just been drawn up, although not yet disclosed.
They show that Trend plc has made a surprisingly big loss and that Umber plc has made an equally surprising big profit. On the basis of this information Sid sold his shares in Trend plc and bought shares in Umber plc. He also advised his brother to buy shares in Umber plc.

Vic, who is also a shareholder in both companies, sold a significant number of shares in Umber plc only the day before its annual report was published.

REQUIREMENT

Which of the following statements concerning Vic is correct?

Sid is a director of two listed public companies in which he has substantial shareholdings: Trend plc and Umber plc.

The annual reports of both Trend plc and Umber plc have just been drawn up, although not yet disclosed.
They show that Trend plc has made a surprisingly big loss and that Umber plc has made an equally surprising big profit. On the basis of this information Sid sold his shares in Trend plc and bought shares in Umber plc. He also advised his brother to buy shares in Umber plc.

Vic, who is also a shareholder in both companies, sold a significant number of shares in Umber plc only the day before its annual report was published.

REQUIREMENT

Which criminal offence Sid has NOT committed?

Greg and Helen are members of the board of directors of Huge plc. Greg also controls a private limited company, Imp Ltd, through which he operates a management consultancy business. He also owns all the shares in Jet Ltd through which he conducts an investment business.

When Greg learns that Huge plc is going to make a take-over bid for Kop plc he arranges for Jet Ltd to buy a large number of shares in Kop plc on the London Stock Exchange on which it makes a large profit when it sells them after the takeover bid is announced. He then arranges for Jet Ltd to transfer the profit to Imp Ltd as the charge for supposed consultancy work. The money is then transferred to Greg through the declaration of dividends by Imp Ltd.

Helen learns of Greg's actions and tells him that she will be reporting him to the authorities because she believes that he is guilty of money laundering. However she has decided not to report him for the insider dealing offence.

REQUIREMENT

Dealing in which of the following securities is covered by insider dealing legislation?

Greg and Helen are members of the board of directors of Huge plc. Greg also controls a private limited company, Imp Ltd, through which he operates a management consultancy business. He also owns all the shares in Jet Ltd through which he conducts an investment business.

When Greg learns that Huge plc is going to make a take-over bid for Kop plc he arranges for Jet Ltd to buy a large number of shares in Kop plc on the London Stock Exchange on which it makes a large profit when it sells them after the takeover bid is announced. He then arranges for Jet Ltd to transfer the profit to Imp Ltd as the charge for supposed consultancy work. The money is then transferred to Greg through the declaration of dividends by Imp Ltd.

Helen learns of Greg's actions and tells him that she will be reporting him to the authorities because she believes that he is guilty of money laundering. However she has decided not to report him for the insider dealing offence.

REQUIREMENT

Who has committed an offence in respect of insider dealing?

Greg and Helen are members of the board of directors of Huge plc. Greg also controls a private limited company, Imp Ltd, through which he operates a management consultancy business. He also owns all the shares in Jet Ltd through which he conducts an investment business.

When Greg learns that Huge plc is going to make a take-over bid for Kop plc he arranges for Jet Ltd to buy a large number of shares in Kop plc on the London Stock Exchange on which it makes a large profit when it sells them after the takeover bid is announced. He then arranges for Jet Ltd to transfer the profit to Imp Ltd as the charge for supposed consultancy work. The money is then transferred to Greg through the declaration of dividends by Imp Ltd.

Helen learns of Greg's actions and tells him that she will be reporting him to the authorities because she believes that he is guilty of money laundering. However she has decided not to report him for the insider dealing offence.

REQUIREMENT

Who has committed an offence in respect of money laundering?