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Ethical theory places no one in a better position; it provides a number of responses to a particular
situation. In case of insider dealings ethical theory might ask that:

2? ahether it is individual͛s choice to do so, if so, can he live with it? In case if he can than
consequences whether are bad or good he͛ll have to bear them.
2? ahether everyone does it if everyone does it there might be no way of avoiding it. It is a custom
and one should also benefit from it. Like in Australia every insider should take advantage of the
privilege provided to him.
2? Insider dealing is totally wrong and is considered illegal in USA and European markets so
everyone should avoid it in those markets. But in Australia there comes a question of individual
choice again if one considers it wrong than he should avoid it.
2? 0ourth reply is whether lesser evil provides for benefit of greater number of people or not. In
Australia the authorities will have to find answer to this question. If insider dealing provides for
the synergy of benefits than it should be allowed.
2? Last option is no insider has the right to gain any extra benefit from any additional knowledge
about markets and stocks. Every person should be on equal footings to reap the benefits of
speculation.

Before knowing the rights and duties we must know what is inside dealing. Under Australian law, insider
dealing occurs when a person trades in financial products whilst in possession of price-sensitive
information which is not publicly available.

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2? he person having inside information should benefit only if the law allows.
2? If the nature of information is sensitive he must not disclose the information.
2? Ynly benefit when other people are not suffering
2? Any person in possession of inside information may not disclose such information to any other
person unless such disclosure is made in the normal course of the exercise of his employment,
profession or duties.

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2? Every person has the right to trade in securities so if a person gets any sort of info than he can
use it for his personal benefit provided it doesn͛t affect others.
2? ºust not be persecuted if info he has is used in legal framework.
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m.? Œuty to act within powers
2.? Œuty to promote the success of the company
3.? Œuty to exercise independent judgment
4.? Œuty to exercise reasonable skill and care and diligence
5.? Œuty to avoid conflicts of interest
6.? Œuty not to accept benefits from third parties
7.? Œuty to declare the nature and extent of any interest in a proposed transaction or arrangement
know your rights as a director and/or shareholder in relation to the calling of meetings
? £emember your contractual duties under your employment contract.

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2? o act in good faith towards the company.

2? o act only within their powers and use their powers only for purposes which benefit
the organization. Œirectors who act outside their powers bind the company to the
transaction but may be held personally liable if a loss results.
 2? pot to use for personal gain any information acquired in their capacity as a director.
2? o act in the best interests of the company and to avoid a conflict between personal and
company interests.
2? o exercise independent judgment in decision-making. A director who is appointed to
represent an interest group, for example employees, is nevertheless obliged to act in
the best interests of the company as a whole.

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2? £emuneration.
2? 
 
2? Service contracts and compensation for loss of office
2? Œirectors are normally entitled to claim reimbursement of all reasonable,
2? Indemnity out of company assets
2? he right to delegate powers
2? £ights concerning board meetings. 

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2? he right to form groups of their choosing to express their views, and receive funding
for them.
2? the right to speak freely, assemble, and demonstrate.
2? he right to due process and an impartial hearing in any disciplinary matter.
2? he right to participate in the governance of the institution.
2? he right to make rules and regulations and have primary responsibility for the
governance of student conduct.
2? he right to do as they will, so long as they harm no other.
Œuties

Be interactive:

Yur duties as a student are to behave, be responsible, and be respectful.

Behaving is quite important.

you miss a class, make up missed work quickly

Come to class prepared with books, completed assignments, pencil, notecards and binder.

Always do homework with care and thoroughness. Homework reinforces the day's lesson and is
necessary for you to retain grammar and vocabulary.

ºake vocabulary note cards and use them. Play games with them. A few minutes each day
will make your vocabulary grow.
Be positive and enthusiastic; it's contagious.
Call or e-mail me if you don't understand or remember something. ae all forget at times and
need reassurance.

£eread text explanations or review the video tape.