§ 27-2-10-2 — Accounting for profits from short term equity trading; persons entitled to bring action; limitation of actions

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 his relationship to such domestic stock
insurance company, any profit realized by him from any purchase and
sale, or any sale and purchase, of any equity security of such company
within any period of less than six (6) 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 purchased or of
not repurchasing the security sold for a period exceeding six (6)
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 (60) days after request or shall fail diligently to prosecute the
same thereafter; but no such suit shall be brought more than two (2)
years after the date such profit was 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
insurance commissioner by rules and regulations may exempt as not
comprehended within the purpose of this section.
Formerly: Acts 1965, c.5, s.2.