Part X Enforcement of Fair Dealing by Directors
Share dealings by directors and their families
323 Prohibition on directors dealing in share options.
(1)
It is an offence for a director of a company to buy—
(a)
a right to call for delivery at a specified price and within a specified time of a specified number of relevant shares or a specified amount of relevant debentures; or
(b)
a right to make delivery at a specified price and within a specified time of a specified number of relevant shares or a specified amount of relevant debentures; or
(c)
a right (as he may elect) to call for delivery at a specified price and within a specified time or to make delivery at a specified price and within a specified time of a specified number of relevant shares or a specified amount of relevant debentures.
(2)
A person guilty of an offence under subsection (1) is liable to imprisonment or a fine, or both.
(3)
In subsection (1)—
(a)
“relevant shares”, in relation to a director of a company, means shares in the company or in any other body corporate, being the company’s subsidiary or holding company, or a subsidiary of the company’s holding company, being shares as respects which there has been granted a listing on a stock exchange (whether in Great Britain or elsewhere);
(b)
“relevant debentures”, in relation to a director of a company, means debentures of the company or of any other body corporate, being the company’s subsidiary or holding company or a subsidiary of the company’s holding company, being debentures as respects which there has been granted such a listing; and
(c)
“price” includes any consideration other than money.
(4)
This section applies to a shadow director as to a director.
(5)
This section is not to be taken as penalising a person who buys a right to subscribe for shares in, or debentures of, a body corporate or buys debentures of a body corporate that confer upon the holder of them a right to subscribe for, or to convert the debentures (in whole or in part) into, shares of that body.