Mansfield v The Queen [2012] HCA 49

Mansfield v The Queen [2012] HCA 49

The word 'information' in the insider trading prohibitions of the Corporations Act 2001 (Cth) encompasses false information. There is no legislative requirement that the information be true in order for liability to attach; what matters is whether the information is not generally available and would, if made available, be likely to influence the price or value of securities. Consequently, possession and use of false, material, non-public information in trading can constitute a contravention of the insider trading provisions.

Parties
Appellant: Nigel Cunningham Swift Mansfield; Appellant: John Kizon; Respondent: The Queen; Respondent: Commonwealth Director of Public Prosecutions (as instructing solicitor for first respondent)
Jurisdiction
Australia
Judgment Date
14 November 2012
Procedural Posture
Criminal Appeal / Appeal to the High Court From the Supreme Court of Western Australia
Outcome
appeal dismissed
Legal Topics
Insider Trading, Definition of 'information' Under Insider Trading Provisions, False Information and Market Conduct, Interpretation of Corporations Act 2001 (cth) Pt 7.10
Corporations Law Criminal Law Insider Trading Definition of 'information' Under Insider Trading Provisions False Information and Market Conduct Interpretation of Corporations Act 2001 (cth) Pt 7.10

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Parties

Nigel Cunningham Swift Mansfield

Appellant

John Kizon

Appellant

The Queen

Respondent

Commonwealth Director of Public Prosecutions (as instructing solicitor for first respondent)

Respondent

Procedural Posture

Criminal Appeal / Appeal to the High Court From the Supreme Court of Western Australia

Legal Issues

  1. 1 Whether 'information' under the Corporations Act insider trading provisions includes false information
  2. 2 Whether possession of false, non-public information can constitute a contravention of insider trading prohibitions

Ratio Decidendi

The word 'information' in the insider trading prohibitions of the Corporations Act 2001 (Cth) encompasses false information. There is no legislative requirement that the information be true in order for liability to attach; what matters is whether the information is not generally available and would, if made available, be likely to influence the price or value of securities. Consequently, possession and use of false, material, non-public information in trading can constitute a contravention of the insider trading provisions.

Court Disposition

appeal dismissed

Orders

  • Appeal in Matter No P60/2011 dismissed.
  • Appeal in Matter No P61/2011 dismissed.