Q.1 Sean is a minority shareholder in a public company, Soapy Plc., with standard articles of association. Soapy Plc manufactures skin and beauty products for men. It has been successful since its inception and is presently making substantial profits. Sean is concerned that the company is using materials in its manufacturing process which have been tested on animals. Sean wants the Board of Directors to adopt a policy of only using materials which have not been tested on animals. It is likely that the adoption of such a policy would increase the company's manufacturing costs. The company is due to hold its annual general meeting within the next six months.

Requirement Critically assess the ability of a shareholder to influence the agenda of a general meeting and consider if it is possible for the general meeting to affect the Board of Director's decisions

Q. 2 "Clearly, insider dealing and other forms of market abuse undermine the efficiency of the stock market. If left unchecked, this would lead to a belief that the stock market in the UK is unfair, allowing investors with inside information to take advantage of those without it." Paul Barnes, Professor of Fraud Risk Management, Nottingham Business School.

Requirement

Critically evaluate whether it is in the public interest to regulate against insider dealing and market abuse.