Explain whether Kip and Lu have committed the offence of insider dealing

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

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

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

State whether Greg has any liability for money laundering