Twitter Logo Youtube Circle Icon LinkedIn Icon

Publishing firms

Legal Developments worldwide

CORPORATE DERIVATIVE LIABILITY FOR MARKET MISCONDUCT OFFENCES

February 2009 - Corporate & Commercial. Legal Developments by Drew & Napier LLC .

More articles by this firm.

Under general principles of corporate law, a corporation is not liable for any contravention of law or offence committed by its employees, except to the extent that the employee can be said to constitute or otherwise represent the directing mind of the company. Typically, the corporation would be attributed with liability only where the employee is a very senior person. In the context of Part XII (Market Conduct) of the Securities and Futures Act (the “SFA”), it may therefore be possible for a corporation to reap the benefit of any market misconduct carried out by its more junior employees.

Read more...

For more information please visit www.drewnapier.com