Section 16b

Analysis and interpretation acts of congress held unconstitutional in whole or in part by the supreme court of the united states 2018 supplement prepared by the congressional.

Section 16b. A transaction between the issuer including an employee benefit plan sponsored by the issuer and an officer or director of the issuer that involves issuer equity securities shall be exempt from section 16 b of the act if the transaction satisfies the applicable conditions set forth in this section. Section 16 is a rule within the securities exchange act of 1934 sea that articulates the regulatory filing responsibilities that directors officers and principal stockholders are legally. 98 473 see government publishing office the constitution of the united states of america.

Rule 16b 3 is available to a more than 10 percent beneficial owner who is also subject to section 16 by virtue of being an officer or director of the issuer see release no 34 37260 may 31 1996 at n. Section 16 cases enforcement actions explore in detail cases and materials mentioned in each issue of section 16 updates. If the corporation fails to act section 16 b authorizes any of its security holders to sue the statutory insider on its behalf to recover the profits from those trades.

Section 16 b provision of the securities exchange act of 1934 that requires that any profit realized by a company insider from the purchase and sale or sale and purchase of the company s equity. For information regarding constitutionality of this section as added by section 1001 a of pub. In practice anyone can qualify to sue the statutory by purchasing a single share of stock after the short swing trading has occurred.