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Gold/Mining/Energy : Mongolia Gold Resources -- Ignore unavailable to you. Want to Upgrade?

To: Phil Jones who wrote (3329)	4/9/1999 9:27:00 AM
From: Dave R. Webb	Respond to of 4066

With respect to buying and selling through another company. Control is an issue, but not the only one. The BCSC Regulations don't hinge on control, but also state insiders must report trades where they have "direct or indirect beneficial ownership." This is tougher to figure out. For an extreme example: Anyone who owns mutual funds could be in a difficult position. If Trimark were to buy and sell MGR, then I as an owner of these Trimark Funds might be in a position where I would have to file insider trading reports on it, as I might have had a change in an indirect beneficial ownership. Not reasonable for me to report, or even be aware of this. Perhaps a more reasonable, but still extreme example might be someone from Western Copper who owns Teck Corp shares. Should they be responsible for filing insider reports on shares on Western Cu that Teck buys or sells? Perhaps? On the other side, if an insider owns 100% of Investco, and then Investco buys or sells securities of that reporting issuer, then of course, that insider would have to report it. Somewhere in between 100% ownership and essentially no ownership is a grey area. The point is that no reporting is expected in the first situation because it would be unreasonable....but it might be required in the second situation if the insider has knowledge of the transaction. A line must be drawn and the regulations must be adhered to, but a line in a grey band can be fairly obscure. Some insiders err on the side of conservatism and report everything, some don't. Dave