Title 15 — Commerce and Trade
Chapter 2A — Securities and Trust Indentures
§ 77o. Liability of controlling persons
Statutory text
Controlling persons
Every 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 77l 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
For purposes of any action brought by the Commission under subparagraph (b) or (d) of section 77t of this title, 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.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 73–38 · 48 Stat. 74
Enacted · 15 U.S.C. § 77o
May 27, 1933, ch. 38, title I, § 15, 48 Stat. 84
Source evidence
Code source credit
May 27, 1933, ch. 38, title I, § 15, 48 Stat. 84Investor Protection and Securities Reform Act of 2010
Pub. L. 111–203 title IX § 929M(a) · 124 Stat. 1376
Amended · 15 U.S.C. § 77o
Pub. L. 111–203 designated existing provisions as subsec. (a)
Inserted · 15 U.S.C. § 77o
Pub. L. 111–203 inserted heading
Added · 15 U.S.C. § 77o
Pub. L. 111–203 added subsec. (b)
Source evidence
Code amendment note
Pub. L. 111–203 designated existing provisions as subsec. (a), inserted heading, and added subsec. (b).Enacted provision · exact public law section
(a) Under the Securities Act of 1933.— Section 15 of the Securities Act of 1933 (15 U.S.C. 77o) is amended— (1) by striking “Every person who” and inserting “(a) Controlling Persons.—Every person who”; and (2) by adding at the end the following: “(b) Prosecution of Persons Who Aid and Abet Violations.— For purposes of any action brought by the Commission under subparagraph (b) or (d) of section 20, any person that knowingly or recklessly provides substantial assistance to another person in violation of a provision of this Act, or of any rule or regulation issued under this Act, shall be deemed to be in violation of such provision to the same extent as the person to whom such assistance is provided.” .Effective date note
Amendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of Title 12, Banks and Banking.
3 of 4 references resolved to an enrolled provision · 1 partial
Editorial Notes
Amendments1934–2010 · 2 rounds
2010
Pub. L. 111–203 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
Amendment by Pub. L. 111–203 effective 1 day after , except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of Title 12, Banks and Banking.
Credits
1933–2010 · 3 acts
- 1933May 27, 1933, ch. 38, title I, § 15, 48 Stat. 84
- 1934June 6, 1934, ch. 404, title II, § 208, 48 Stat. 908
- 2010Pub. L. 111–203, title IX, § 929M(a), , 124 Stat. 1861.
Show as published
(May 27, 1933, ch. 38, title I, § 15, 48 Stat. 84; June 6, 1934, ch. 404, title II, § 208, 48 Stat. 908; Pub. L. 111–203, title IX, § 929M(a), , 124 Stat. 1861.)