Adefi Olong

Insider Trading by Corporate Fiduciaries: an Analysis Under Nigerian Company Law Adefi Olong

Taken into cognizance the recent trends in world global economies that heralded scandals of monumental proportions that led to the collapse of once giant companies like Enron, world cross, Global Crossing, ucross and here in Nigeria, the revelation a few years ago that Unilever under provided for liabilities of billions of Naira in its audited accounts and the 25 billion of concealed liabilities in African petroleum after privatization. The bedrock of any economy is the confidence that investors put their capital to work and their fortunes at risk because they trust that the market place is honest. This can only be achieved if investors know that securities laws are free, fair and provide adequate safeguard, for their investments. The market remains the source of investors confidence, so sharp practices via Insider trading must be nipped in the bud. The work therefore analyzed the detrimental roles of corporate fiduciaries in their dealings with securities and the role of appropriate legal regime to respond to these practices.