Explain any criminal offences Sid may have committed

Sid is a director of two listed public companies in which he has substantial shareholdings: Trend plc andUmber 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 equallysurprising big profit. On the basis of this information Sid sold his shares in Trend plc and bought shares inUmber 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 theday before its annual report was published.

【論述題】

State whether Vic has any right to claim for the increase in share price that he missed out on when hesold his shares

State whether Jet has any liability for money laundering

State whether Ian has any liability for money laundering

Ian is an accountant, and one of his clients is Jet, who runs an illegal operation as well as some otherlegitimate businesses. Jet approached Ian for advice as to how he should deal with the gains he makes fromthe illegal operation. Ian suggested that, rather than try to use his existing legitimate businesses to disguisethe source of the money, Jet should use his legally made money to buy the local football club, Kickers, withthe 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 illegalmoney through the football club.

【論述題】

State the offence of money laundering

State whether Greg has any liability for insider dealing

State whether Greg has any liability for money laundering

Fran and Gram registered a private limited company, Ire Ltd, in January 2009, with each of them becoming adirector of the company.

Although the company did manage to make a small profit in its first year of trading, it was never a greatsuccess and in its second year of trading it made a loss of ￡10,000.

At that time Fran said he thought the company should cease trading and be liquidated. Gram, however, wasinsistent that the company would be profitable in the long term so they agreed to carry on the business, withFran taking less of a part in the day-to-day management of the company, although retaining his position as acompany director.

In the course of the next three years Gram falsified Ire Ltd's accounts to disguise the fact that the companyhad continued to suffer losses, until it became obvious that he could no longer hide the company's debtsand that it would have to go into insolvent liquidation, with debts of ￡100,000.

【論述題】

State whether criminal or civil action, or both, can be taken in relation to fraudulent trading andwrongful trading

Explain whether Fran or Gram will be liable for either of the following:

(i) Fraudulent trading under s213 Insolvency Act 1986

(ii) Wrongful trading under s214 Insolvency Act 1986

Jaz plc is listed on the London Stock Exchange. Kip works for Jaz plc as an accountant. Whilst drawing upthe annual accounts, Kip noticed that Jaz plc's profits were better than anyone could have expected. As aconsequence of this knowledge, he bought shares in Jaz plc before its good results were announced. Hemade a substantial profit on the share dealing. Kip also told his friend Lu about the results before they wereannounced. Lu also bought shares in Jaz plc.

【論述題】

State the definition of inside information