• About
• Publications
• Exemptions
• Notices
• What's new?
• International
• Speeches
• Information for investors
• Contact us
• Site map
• Home

23 December 1992

News release

Robt. Jones Investments Limited

The Securities Commission has received requests from 10 shareholders of Robt. Jones Investments Limited ("RJI") in relation to possible insider trading in RJI shares. Specifically the shareholders have asked the Commission to approve the issue of a notice to RJI requiring the company to obtain an opinion from a barrister or solicitor as to whether the company has a cause of action against any person under the rules of law about insider trading.

We have met with RJI and certain shareholders of the company. We have given them the opportunity to address us on the requests and on appropriate procedures for dealing with them.

In September 1992 the Commission commenced proceedings in the High Court in Wellington, naming Sir Robert Jones, companies associated with Sir Robert Jones, and RJI as parties. These proceedings are concerned with the obligation placed on "substantial security holders" under the law to disclose information about their interests in New Zealand listed shares. The proceedings are not related to insider trading. While the evidence in the proceedings will be similar in very many respects to the evidence which the barrister or solicitor, if appointed, would be required to consider, the legal questions which arise are rather different. The Commission perceives that it might prejudice the interests of parties to the proceedings if statutory procedures were applied at the present time in respect of any suggested insider trading in RJI shares.

The Commission has therefore decided not to approve the requests of the shareholders for the time being. We propose to review the matter at a later date when we consider that we are better able to take account of the interests of the parties to the substantial security holder proceedings.

In the meantime the Commission expresses no view on the substance of the RJI shareholders' request for action.