§ 523.8

523.8 Profit in trading stock to inure to company. 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 ofless than six months, unless such security was acquired in good faith in connection with adebt previously contracted, shall inure to and be recoverable by the company, irrespectiveof any intention on the part of such beneficial owner, director or officer in entering intosuch transaction of holding the security purchase or of not repurchasing the security soldfor a period exceeding six months. Suit to recover such profit may be instituted at law orin equity in any court of competent jurisdiction by the company, or by the owner of anysecurity of the company in the name and in behalf of the company if the company shall failor refuse to bring such suit within sixty days after request or shall fail diligently to prosecutethe same thereafter; but no such suit shall be brought more than

the company if the company shall failor refuse to bring such suit within sixty days after request or shall fail diligently to prosecutethe same thereafter; but no such suit shall be brought more than two years after the datesuch 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, orthe sale and purchase, of the security involved, or any transaction or transactions whichthe commissioner by rules and regulations may exempt as not comprehended within thepurpose of this section. [C66, 71, 73, 75, 77, 79, 81, §523.8]Referred to in §523.10, 523.11, 523.12, 523.13, 523.14 Sat Dec 23 00:54:34 2023 Iowa Code 2024, Section 523.8 (15, 0)