Get BINDEX 04/16/2011 16:20:57 Page 247 Index Academic Websites, Credibility Of, 34 ACT

240.16b-1 — Transactions approved by a regulatory authority. Any purchase and sale, or sale and purchase, of a security shall be exempt from section 16(b) of the Act, if the transaction is effected by an investment company registered under the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.)

Section 16(1): To prevent undesirable speculation in specified securities in any State or area, Central Government may issue a notification. It may thereby declare that no person in such State or area shall enter into any contract for the sale or purchase of any such security without its permission.

Rule 14b-1 sets forth obligations of registered brokers and dealers to forward company communications to beneficial owners.

Section 16 requires insiders of a public company to report their direct and indirect ownership of the company's equity securities and any transactions in such securities, and to disgorge any “short-swing profits,” which are discussed below.

Section 16 imposes filing standards for "insiders," and defines insiders as any officers, directors, or stockholders who possess stock that directly or indirectly results in beneficial ownership of more than 10% of the company's common stock or other class of equity.

-- (1) A contract is said to be induced by "undue influence" where the relations subsisting between the parties are such that one of the parties is in a position to dominate the will of the other and uses that position to obtain an unfair advantage over the other.

This chapter may be cited as the “Securities Exchange Act of 1934.” (June 6, 1934, ch. 404, title I, § 1, 48 Stat.

A company subject to Section 13 or 15(d) of the US Securities Exchange Act of 1934 (Exchange Act), which requires the company to file periodic reports with the US Securities and Exchange Commission (SEC).