The recent case concerning the purchase of shares in David Jones
by two of its directors in close proximity to receipt of a merger
proposal and release of a quarterly sales update has raised a
number of important legal and corporate governance considerations
that companies and directors need to be reminded and aware of. Even
though ASIC dropped its investigation and issued a "No Further
Action" letter, the David Jones matter is a cautionary tale
that the public perception of the conduct is paramount and can have
reputational, business and personal repercussions that are as
severe as any legal prosecution.
In this Alert, Partner Michael Hansel and Associate Katherine
Hammond set out seven key lessons for companies, directors, market
participants and investors about corporate governance matters
arising from the issues associated with the David Jones matter.
