375.424. Unlawful for officer or director to sell equity security not owned by him--delivery.
Unlawful for officer or director to sell equity security notowned by him--delivery.
375.424. It shall be unlawful for any beneficial owner,director or officer, directly or indirectly, to sell any equitysecurity of such company if the person selling the security orhis principal does not own the security sold, or if owning thesecurity, does not deliver it against such sale within twentydays thereafter, or does not within five days after such saledeposit it in the mails or other usual channels oftransportation; but no person shall be deemed to have violatedthis section if he proves that notwithstanding the exercise ofgood faith he was unable to make such delivery or deposit withinsuch time, or that to do so would cause undue inconvenience orexpense.
(L. 1965 p. 575 § 3)