Controlling persons
lEvery person who, by or through stock ownership, agency, or otherwise, or who, pursuant to or in connection with an agreement or understanding with one or more other persons by or through stock ownership, agency, or otherwise, controls any person liable under sections 77k or 77 of this title, shall also be liable jointly and severally with and to the same extent as such controlled person to any person to whom such controlled person is liable, unless the controlling person had no knowledge of or reasonable ground to believe in the existence of the facts by reason of which the liability of the controlled person is alleged to exist.
Prosecution of persons who aid and abet violations
section 77t of this titleFor purposes of any action brought by the Commission under subparagraph (b) or (d) of , any person that knowingly or recklessly provides substantial assistance to another person in violation of a provision of this subchapter, or of any rule or regulation issued under this subchapter, shall be deemed to be in violation of such provision to the same extent as the person to whom such assistance is provided.
May 27, 1933, ch. 3848 Stat. 84June 6, 1934, ch. 40448 Stat. 908Pub. L. 111–203, title IX, § 929M(a)124 Stat. 1861(, title I, § 15, ; , title II, § 208, ; , , .)
Editorial Notes
Amendments
Pub. L. 111–2032010— designated existing provisions as subsec. (a), inserted heading, and added subsec. (b).
1934—Act , exempted from liability controlling persons having no knowledge or reasonable grounds for belief.
Statutory Notes and Related Subsidiaries
Effective Date of 2010 Amendment
Pub. L. 111–203section 4 of Pub. L. 111–203section 5301 of Title 12Amendment by effective 1 day after , except as otherwise provided, see , set out as an Effective Date note under , Banks and Banking.