§ 523.8 — Profit in trading stock to inure to company

Iowa § 523.8

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 523: ELECTIONS AND INSIDER TRADING

Text

For the purpose of preventing the unfair use of information which may have been obtained
by such beneficial owner, director or officer by reason of the relationship to such company,
any profit realized by the beneficial owner, director or officer from any purchase and sale,
or any sale and purchase, of any equity security of such company within any period of less
than six months, unless such security was acquired in good faith in connection with a debt
previously contracted, shall inure to and be recoverable by the company, irrespective of
any intention on the part of such beneficial owner, director or officer in entering into such
transaction of holding the security purchase or of not repurchasing the security sold for a
period exceeding six months. Suit to recover such profit may be instituted at law or in equity
in any court of competent jurisdiction by the company, or by the owner of any security of
the company in the name and in behalf of the company if the company shall fail or refuse to
bring such suit within sixty days after request or shall fail diligently to prosecute the same
thereafter; butnosuchsuitshallbebroughtmorethantwoyearsafterthedatesuchprofitwas
realized. This section shall not be construed to cover any transaction where such beneficial
owner was not such both at the time of the purchase and sale, or the sale and purchase, of
the security involved, or any transaction or transactions which the commissioner by rules
and regulations may exempt as not comprehended within the purpose of this section.

Legislative History

[C66, 71, 73, 75, 77, 79, 81, §523.8]