§689n — Title 15 Commerce and Trade | U.S. Code

Summary

If a New Markets Venture Capital company breaks the rules, anyone who directly or indirectly causes, orders, helps, or allows that wrongdoing is also treated as breaking the rules. That applies whether the act already violates the rules or will lead to a violation. Officers, directors, employees, agents, or anyone who helps run the company must act in the company’s best interest. It is illegal for them to do or fail to do something that breaks that duty and causes or risks money loss or other harm to the company. Also, no one may become or keep serving in those roles if they have been convicted of a felony or a crime involving dishonesty or breach of trust, or if a court has found them liable for fraud or breach of trust or ordered them to stop those acts—unless the Administrator gives written permission.

Title 15, §689n

Commerce and Trade — Source: USLM XML via OLRC

(a)Whenever any New Markets Venture Capital company violates any provision of this chapter, of a regulation issued under this chapter, or of a participation agreement entered into under this chapter, by reason of its failure to comply with its terms or by reason of its engaging in any act or practice that constitutes or will constitute a violation thereof, such violation shall also be deemed to be a violation and an unlawful act committed by any person who, directly or indirectly, authorizes, orders, participates in, causes, brings about, counsels, aids, or abets in the commission of any acts, practices, or transactions that 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 New Markets Venture Capital company to engage in any act or practice, or to omit any act or practice, in breach of the person’s fiduciary duty as such officer, director, employee, agent, or participant if, as a result thereof, the company suffers or is in imminent danger of suffering financial loss or other damage.

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

(1)for any person to take office as an officer, director, or employee of any New Markets Venture Capital company, or to become an agent or participant in the conduct of the affairs or management of such a company, if the person—

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

(B)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; and

(2)for any person 11 So in original. Probably should be followed by “to”. continue to serve in any of the capacities described in paragraph (1), if—

(A)the person is convicted of a felony, or any other criminal offense involving dishonesty or breach of trust; or

(B)the person is 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.

§689n Unlawful acts and omissions; breach of fiduciary duty

Summary

Title 15, §689n

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