State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_78D > GS_78D-7

§78D‑7.  Liability of principals, controlling persons and others.

(a)        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 hisemployment or office shall be deemed the act, omission, or failure of suchindividual, association, partnership, corporation, or trust, as well as of suchofficial, agent, or other person.

(b)        Every person whodirectly or indirectly controls another person liable under any provision ofthis Chapter, every partner, officer, or director of such other person, everyperson occupying a similar status or performing similar functions, everyemployee of such other person who materially aids in the violation is alsoliable jointly and severally with and to the same extent as such other person,unless the person who is also liable by virtue of this provision sustains theburden of proof that he did not know, and in exercise of reasonable care couldnot have known, of the existence of the facts by reason of which the liabilityis alleged to exist. (1989, c. 634, s. 1.)