§687f — Title 15 Commerce and Trade | U.S. Code

Summary

People who order, cause, help, or take part in a licensed company's breaking of the rules are also treated as having committed the illegal act themselves. Officers, directors, employees, agents, or others who run or help run a licensee must not act, or fail to act, in ways that break their duty to the company if those actions cause or put the company at risk of financial loss or other harm. No one may become or stay as an officer, director, employee, agent, or manager of a licensee without written consent from the Administration if they have been convicted of a felony or any crime involving dishonesty or breach of trust, or if a court has found them liable for fraud or breach of trust or has barred them by court order for those reasons.

Title 15, §687f

Commerce and Trade — Source: USLM XML via OLRC

(a)Wherever a licensee violates any provision of this chapter or regulation issued thereunder by reason of its failure to comply with the terms thereof or by reason of its engaging in any act or practice which constitutes or will constitute a violation thereof, such violation shall be deemed to be also a violation and an unlawful act on the part of any person who, directly or indirectly, authorizes, orders, participates in, or causes, brings about, counsels, aids, or abets in the commission of any acts, practices, or transactions which constitute or will constitute, in whole or in part, such violation.

(b)It shall be unlawful for any officer, director, employee, agent, or other participant in the management or conduct of the affairs of a licensee to engage in any act or practice, or to omit any act, in breach of his fiduciary duty as such officer, director, employee, agent, or participant, if, as a result thereof, the licensee has suffered or is in imminent danger of suffering financial loss or other damage.

(c)Except with the written consent of the Administration, it shall be unlawful—

(1)for any person hereafter to take office as an officer, director, or employee of a licensee, or to become an agent or participant in the conduct of the affairs or management of a licensee, if—

(A)he has been convicted of a felony, or any other criminal offense involving dishonesty or breach of trust, or

(B)he has been found civilly liable in damages, or has been permanently or temporarily enjoined by an order, judgment, or decree of a court of competent jurisdiction, by reason of any act or practice involving fraud or breach of trust; or

(2)for any person to continue to serve in any of the above-described capacities, if—

(A)he is hereafter convicted of a felony, or any other criminal offense involving dishonesty or breach of trust, or

(B)he is hereafter found civilly liable in damages, or is permanently or temporarily enjoined by an order, judgment, or decree of a court of competent jurisdiction, by reason of any act or practice involving fraud or breach of trust.

§687f Unlawful acts and omissions by officers, directors, employees, or agents

Summary

Title 15, §687f

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