I have copied an abridged version of Showmans Post from the PLV thread where he discusses the difficulties of Directors buying shares in their own company (this is the thread I referred to the other day)
"Directors buying by way of a salary sacrifice scheme is the ONLY legal way to buy shares if those directors have access to sensitive market information that has not been released to the market.
The way it works is that the company invites directors and officers to join the scheme every six months for a six month period.
Once the decision has been made to join the scheme the director or officer must salary sacrifice the same amount each month for six months, he/she cannot withdraw from the scheme unless there are circumstances where the Board can intervene (ie: death in the family etc...).
It is at the time of the decision to join where the director or officer needs to take into account on whether they hold unreleased sensitive information. If not, then join, if so, then wait until the information has been released then join.
This means that even though there MAY be unreleased sensitive information today, the director makes no decision to buy shares....it is the company who enacts the buying each month on behalf of the scheme...and it's members.
This is totally legal and a good way for directors and officers to accumulate shares because the decision to buy is only made once each six months, and that is only done without unreleased market sensitive information. It is also very hard for the MD to buy shares outside the scheme because there are many times where we have sensitive info."
Again please note that this has been copied from Showmans post on the PLV thread.
CTP Price at posting:
31.0¢ Sentiment: None Disclosure: Held
