A CASE FOR CORPORATE LIABILITY FOR INSIDER TRADING OFFENCES IN NIGERIA

The phenomenon of ‘insider trading otherwise referred to, as ‘insider dealing’ by some learned authors is inextricably associated with unlawful transactions in company securities, The insider trader may be defined as a person or individual who uses price sensitive information or knowledge acquired by virtue of his privileged position in a corporation, either arising from holding an office or by connection to those in office, to trade in such information for personal gain to the detriment of the investing public, prior to such information being made public. Trading in company securities constitute the very essence of private capital investment and the ultimate survival of capitalism. The imperatives for the requirement of perfect securities market are hinged on two conditions that is, freedom from manipulation and freedom from trading on inside information. This calls for a form of regulation and it is the function of government and the law in one way or another to cleanse the markets of these ills as nearly as possible. The aims of the consideration of this offence as it relates to corporations are to examine the rationale for making insider trading an offence, the legal regime on insider trading and the extent to which the offence can be committed by a corporation.