Insider Trading Amendments Could Impose "Special Relationship" Where Take-Over "Considered"

As we discussed last week, the Ontario government recently released its  2013 budget plan, which included discussion of amending the Securities Act to clarify the statute's insider trading provisions. The text of the budget bill now provides further detail of the government's intentions. 

Among the proposed amendments to the Actwould be a change to the definition of "person or company in a special relationship with the reporting issuer" in respect of those to whom the insider trading restrictions apply. Specifically, the definition would be expanded to include not only persons and companies associated with those proposing to make a take-over bid of a reporting issuer (as is currently the case), but also those associated with a party considering or evaluating whether to make a take-over bid. Similar changes to the wording respecting those considering or evaluating  whether to engage in business or professional activities are also proposed. Thus,