Extension of Company Policy to Spouse?

What is the name of your state?Colorado

I have a question regarding if Company Policies can extend to the spouse of an employee.

In my example the company policy is to regulate the types of securities that the employee can trade, as well as where they are held and when trades may be placed. The company policy is also written to include the spouse, domestic partner, minor children and more. It is stated that these other must comply in the same fashion as the employee.

Can the company policy regulate the actions of a spouse, dometic partner, etc? Non-compliance with the policy can result in the termination of the employee.

**You can assume that any securities transactions by the spouse, domestic partner, etc would be in compliance with all NASD regulations and not made using any insider information.

I'm sure someone will post on the legal issues of this, but I can say that I have had to sign several of these agreements during my career, and most of tem included immediate family. Especially with the spouse, it would make sense, as spouses are going to normally do what is best for each other the same as they would do for themselves.

Can the company policy regulate the actions of a spouse, dometic partner, etc? Within reason, yes. Another example would be prohibiting a spouse or close relative from working for a competitor of the employee's employer which could create a significant conflict in interest for the employee.