, or even mid-to-low-level employees of the issuer.
Another significant aspect of the Dirks ruling was contained in footnote 14 of the opinion, where the Court formulated the "concept of the 'constructive insiders'--outside lawyers, consultants, investment bankers or others--who legitimately receive confidential information from a corporation in the course of providing services to the corporation." Newkirk, supra note 37.
In upholding the conviction of the columnist for securities fraud under Rule 1 Ob-5, the Second Circuit rejected the argument that the misappropriation theory only applies to information misappropriated by corporate or constructive insiders. Id.
(Emphasized terms were latest amended on June 2, 2010.) The ban in Taiwan mainly applies to three categories of persons: (1) Insiders: namely directors, supervisors, managerial officers and controlling shareholders (defined as holding more than ten percent of the share); (2) Constructive insiders
: namely persons who have learned information by reason of occupational or controlling relationship, such as accountants, counselors and attorneys.
qualify as classical insiders or constructive insiders present no
investment bank who were constructive insiders of takeover bidder rather
("constructive insiders" or "quasi-insiders"): e.g.,
not actually temporary or constructive insiders because the information
insider" (also known as a constructive insider or a quasi-insider).