§ 23-2-6-25 — Liability; violation of chapter

Indiana § 23-2-6-25

• Jurisdiction: Indiana
• Title 23: BUSINESS AND OTHER ASSOCIATIONS
• Art. 2: SECURITIES AND FRANCHISES
• Ch. 6: Indiana Commodity Code

Text

(a) The act, omission, or failure of any
official, agent, or other person acting for an individual, an association,
a partnership, a limited liability company, a corporation, or a trust
within the scope of the official's, agent's, or person's employment or
office constitutes the act, omission, or failure of both:
(1) the individual, association, partnership, limited liability
company, corporation, or trust; and
(2) the official, agent, or person.
(b) Except as provided in subsection (c), the following are jointly
and severally liable for the violation of this chapter by a person and are
liable to the same extent as the person:
(1) Each person who directly or indirectly controls the person who
committed the violation.
(2) Each partner, officer, and director of the person who
committed the violation.
(3) Each person occupying a similar status or performing a similar
function as a partner, officer, or director described in subdivision
(2).
(4) Each person who:
(A) is an employee of the person who committed the violation;
and
(B) materially aids in the violation.
(c) A person is not liable under subsection (b) if the person proves
that the person:
(1) did not know; and
(2) in exercise of reasonable care could not have known;
of the existence of the facts on which the liability is alleged to exist.

Legislative History

As added by P.L.177-1991, SEC.10. Amended by P.L.8-1993, SEC.316.