Source: All England Reporter
Publisher Citation: [2005] All ER (D) 282 (Nov)
Court: Court of Justice of the European Communities (Grand Chamber)

Judges Skouris (President), Jann, Timmermans, Rosas (Presidents of Chambers), Puissochet, Schintgen, von Bahr (Rapporteur), Cunha Rodrigues and Silva de Lapuerta

Judgment Dates: 22 November 2005


European Communities - Companies - Insider dealing - Disclosure of inside information to third parties - Prohibition - Whether prohibition on disclosure of information made in course of employment - Reference for preliminary ruling - Council Directive (EEC) 89/592, art 3(a).

The Case

Article3(a) of Council Directive (EEC) 89-592 (coordinating regulations on insider dealing) precluded a person, who received inside information in his capacity as an employee's representative on a company's board of directors or in his capacity as a member of the liaison committee of a group of undertakings, from disclosing such information to the general secretary of the professional organisation which organised those employees and which appointed that person as a member of the liaison committee, unless: (i) there was a close link between the disclosure and the exercise of his employment, profession and duties, and (ii) that disclosure was strictly necessary for the exercise of that employment, profession or duties. As part of its examination, the national court had, in the light of the applicable national rules, to take particular account of: (i) the fact that exception to the prohibition of disclosure of inside information had to be interpreted strictly; (ii) the fact that each additional disclosure was liable to increase the risk of that information being exploited for a purpose contrary to the directive; and (iii) the sensitivity of the inside information.

Practice Areas

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