17B:18-54 - Suit for profits realized by director, officer, and principal stockholders - New Jersey Statutes

17B:18-54.  Suit for profits realized by director, officer, and principal stockholders
    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 insurer, any profit realized by him from any purchase and sale, or any sale and purchase, of any stock of such insurer within any period of less than 6 months, unless such stock was acquired in good faith in connection with a debt previously contracted, shall inure to and be recoverable  by the insurer, irrespective of any intention on the part of such beneficial  owner, director or officer in entering into such transaction of holding the  stock purchased or of not repurchasing the stock sold for a period exceeding 6  months.  Suit to recover such profit may be instituted at law or in equity in  any court of competent jurisdiction by the insurer or by the owner of any stock  of the insurer in the name and in behalf of the insurer if the insurer shall  fail or refuse to bring such suit within 60 days after request or shall fail  diligently to prosecute the same thereafter;  but no such suit shall be brought  more than 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 stock involved, or any transaction or transactions which the commissioner  may by rules and regulations exempt as not comprehended within the purpose of  this paragraph.

     L.1971, c. 144, s. 17B:18-54.