§ 11-53-109 — Liability of principals, controlling persons, and others

(1) The
act, omission, or failure of any official, agent, or other person acting for any
individual, association, partnership, corporation, or trust within the scope of his
employment or office shall be deemed the act, omission, or failure of such
individual, association, partnership, corporation, or trust, as well as of such official,
agent, or other person.

(2) Every person who directly or indirectly controls another person liable
under any provision of this article, every partner, officer, or director of such liable
person, every person occupying a similar status or performing similar functions to
such liable person, and every employee of such liable person who materially aids in
the violation is also liable jointly and severally with and to the same extent as the
person liable under the provisions of this article unless the person who is also liable
by virtue of this subsection (2) sustains the burden of proof that the person did not
know, and in exercise of reasonable care could not have known, of the existence of
the facts by reason of which the liability is alleged to exist.

Legislative History

Source: L. 89: Entire article R&RE, p. 636, � 1, effective July 1.