If this sort of practice actually took place for any listed...

If this sort of practice actually took place for any listed stock, it's not a complex strategy and therefore should not be insanely hard for a regulator to check on.

Insider trading is a difficult activity to prove and it's proven successfully all the time (i.e. perps are found guilty in court).

So it is illegal to participate with a fund in a planned short trade of the company you are a Director of, and share in the profits?

I.e. Shareholders lose $x in dilution, the fund gets half of $x in the short trade and the company makes the other half via the Shares Placement Cash into the bank?

If so, it wouldn't be hard to follow the money. The regulator or 'FBI' have to prove the company director(s) knew the fund was going to short their shares and had agreed to help them cover/get out of the trade via the placement at a lower share price to market.

Surely noone would consider serious personal penalties in return for a quick company cash topup?

** i am not in any way stating ARU would consider this....it's just a muse ...