The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 9 V.S.A. § 4303)
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§ 4303. Penalty
To prevent the unfair use of information that may have been obtained by the beneficial
owner, director, or officer by reason of his or her relationship to the company, any
profit realized by him or her from any purchase and sale, or any sale and purchase,
of any equity security of the company within any period of less than six months, unless
the 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 the beneficial owner, director, or officer in entering into the transaction
of holding the security purchased or of not repurchasing the security sold for a period
exceeding six months. Suit to recover the profit may be instituted 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 fails or refuses to bring
suit within 60 days after request or fails diligently to prosecute it thereafter;
but no such suit may be brought more than two years after the date the profit was
realized. This section shall not be construed to cover any transaction where the
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 that the
Commissioner by rules and regulations may exempt as not comprehended within the purpose
of this section. (Added 1965, No. 88, § 2.)