15 May 2002
The Securities Commission has declined a request, under section 17 of the Securities Amendment Act 1988, from Catharine
Mary Franks, a shareholder in Air NZ.
Mrs Franks asked the Commission to approve that a lawyer be appointed to provide an opinion on whether there was an
insider trading case to answer relating to trading in shares in Air New Zealand Limited. If the request had been
approved the costs would have been borne by Air New Zealand.
The request identified as possible insiders the New Zealand Government, the Prime Minister, the Minister of Finance, the
Ministry of Transport, any advisers to any of the above who received non-public price sensitive information concerning
Air New Zealand at the relevant times, and any agents or officers of the Australian Government.
The request covered two main matters:
- a conversation on 25 September between the Prime Minister and a sharebroker at Forsyth Barr Frater Williams Limited,
and
- “due diligence” disclosures by Air NZ to the New Zealand Government, the then major shareholders of Air NZ (BIL
International Ltd and Singapore Airlines Ltd) and Qantas Airways Ltd.
“The Commission’s earlier comprehensive investigation into trading in Air New Zealand shares did not find any evidence
of insider trading,” Chairman Jane Diplock said.
“After carefully considering the section 17 request the Commission concluded that there is no evidence to warrant
further investigation.”
The Commission’s decision is available on its website www.sec-com.govt.nz.
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