Insurance Companies Act

Meaning of insider

• 293 (1) In this section, insider means with respect to a distributing company

  • (a) a director or officer of the company;

  • (b) a director or officer of a subsidiary of the company;

  • (c) a director or officer of a body corporate that enters into a business combination with the company; or

  • (d) a person employed or retained by the company.

• Marginal note:Prohibition — short sale

  (2) No insider may knowingly sell, directly or indirectly, a security of a distributing company or of any of the distributing company’s affiliates if the insider does not own or has not fully paid for the security.

• Marginal note:Exception

  (3) Despite subsection (2), an insider may sell a security that they do not own if they own another security that is convertible into the security that was sold or they own an option or right to acquire the security that was sold, and if within 10 days after the sale they

  • (a) exercise the conversion privilege, option or right and deliver the security so acquired to the purchaser; or

  • (b) transfer the convertible security, option or right to the purchaser.

• Marginal note:Prohibition — calls and puts

  (4) No insider may knowingly, directly or indirectly, buy or sell a call or put in respect of a security of a company or of any of the company’s affiliates.