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23-2-6-25. Liability; violation of chapter

IN Code § 23-2-6-25 (2019) (N/A)
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Sec. 25. (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.

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

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23-2-6-26. Effect of chapter on securities law