Us Code § 7243 - Forfeiture of certain bonuses and profits
Full text of Us Code United States Code § 7243 — Forfeiture of certain bonuses and profits, with citation guidance and answers to common questions.
§ 7243. Forfeiture of certain bonuses and profits
(a) Additional compensation prior to noncompliance with Commission financial reporting requirements
If an issuer is required to prepare an accounting restatement due to the material noncompliance of the issuer, as a result of misconduct, with any financial reporting requirement under the securities laws, the chief executive officer and chief financial officer of the issuer shall reimburse the issuer for—
(1) any bonus or other incentive-based or equity-based compensation received by that person from the issuer during the 12-month period following the first public issuance or filing with the Commission (whichever first occurs) of the financial document embodying such financial reporting requirement; and
(2) any profits realized from the sale of securities of the issuer during that 12-month period.
(b) Commission exemption authority
The Commission may exempt any person from the application of subsection (a), as it deems necessary and appropriate.
(Pub. L. 107–204, title III, §304, July 30, 2002, 116 Stat. 778.)
About This Section
15 U.S.C. § 7243 is part of Title 15 of the United States Code. The United States Code is the official codification of federal statutes maintained by the Office of the Law Revision Counsel of the U.S. House of Representatives. Congress amends the Code through new public laws, which are eventually incorporated into the relevant title.
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