News Release
Lower Mainland company president penalized for failing to file insider reports
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Date:
2002-03-20 -
Number:
2002/24
Vancouver -- A Lower Mainland company president who failed to file insider reports for his share trading in five companies has been banned from the securities market for 18 months and ordered to pay a $5,000 penalty by the B.C. Securities Commission.
In a commission decision made public today, Andrew Rutherford Prowse admitted that he failed to file 23 insider reports within the time required for his trading in five public companies. He is still an insider of West African Venture Exchange Corp. (formerly Liquid Gold Resources Inc.), a Canadian Venture Exchange-listed company.
From Feb. 1997 to Feb. 1998, Prowse purchased 513,000 shares and sold 529,500 shares of Liquid Gold and did not file insider reports for these trades. He was the company's president and a director during that period.
In the decision, the panel permitted Prowse to remain as president and a director of the Lower Mainland company provided that he successfully completes within one year a course on the duties and responsibilities of directors and officers. However, he is barred from becoming a director or officer of any other reporting issuer for at least 18 months.
After commission staff drew to Prowse’s attention his failure to file the insider reports, Prowse filed the 23 reports in 1998 and paid the related late filing fees. Since then, he has filed his insider reports on time.
In rendering its decision, the panel recognized that the disclosure provided by insider trading reports is important market information, as it makes public the trading activities of the persons who are most closely connected to the company and in a position to be most knowledgeable about its affairs.
"Failure to file insider reports in a timely manner is, in and of itself, a threat to the integrity of our capital markets," said the panel.
The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities and exchange contracts within the province. Copies of the decision can be viewed in the documents database of the commission’s website www.bcsc.bc.ca or by contacting Andrew Poon, Media Relations, 604-899-6880.