Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|
---|---|
Jan 06, 2010 |
referred to corporations, authorities and commissions |
Jun 05, 2009 |
reference changed to corporations, authorities and commissions |
Jun 02, 2009 |
referred to governmental employees |
Assembly Bill A8646
2009-2010 Legislative Session
Sponsored By
BRODSKY
Archive: Last Bill Status - In Assembly Committee
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
co-Sponsors
Barbara Lifton
Rory Lancman
multi-Sponsors
Susan John
2009-A8646 (ACTIVE) - Details
- See Senate Version of this Bill:
- S5768
- Current Committee:
- Assembly Corporations, Authorities And Commissions
- Law Section:
- Business Corporation Law
- Laws Affected:
- Add §631, Bus Corp L; add §179-a, R & SS L
- Versions Introduced in Other Legislative Sessions:
-
2011-2012:
A3805, S2677
2013-2014: A659, S943
2015-2016: A3269, S1475
2017-2018: A5439, S167
2019-2020: A4355, S1022
2009-A8646 (ACTIVE) - Summary
Authorizes a public retirement system, as defined in section 501 of the retirement and social security law, mutual fund, or other institutional investor to bring actions for damages sustained due to the commission of certain prohibited and criminal acts in violation of the Martin Act (Fraudulent Practice in Respect to Stocks, Bonds and other Securities).
2009-A8646 (ACTIVE) - Sponsor Memo
BILL NUMBER:A8646 TITLE OF BILL: An act to amend the business corporation law and the retirement and social security law, in relation to authorizing certain actions by institutional investors PURPOSE OR GENERAL IDEA: This bill would provide authority to large institutional investors, including the state's pension fund to bring actions for damages resulting from violations of the State's securities laws. SUMMARY OF SPECIFIC PROVISIONS: Amends the BCL and R&SS Law to allow mutual funds and institutional investors, and the state retirement fund to bring an action for damages as a result of violating state securities laws. JUSTIFICATION: As a result of recent corporate wrongdoings, trustees of large institutional investors such as mutual funds or the State's pension fund, have found themselves without remedy for damages and massive losses due to corporate violations of state securities laws. Under current law, the State attorney general has broad powers to prevent fraudulent securities practices, yet large institutional inves- tors have no right of action when the state's securities laws are violated, because New York is only one or two states without such reme- dy. This bill only furthers the purposes of the Martin Act which are to deter fraudulent practices in the sale of securities and protect inves-
2009-A8646 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 8646 2009-2010 Regular Sessions I N A S S E M B L Y June 2, 2009 ___________ Introduced by M. of A. BRODSKY -- read once and referred to the Commit- tee on Governmental Employees AN ACT to amend the business corporation law and the retirement and social security law, in relation to authorizing certain actions by institutional investors THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The business corporation law is amended by adding a new section 631 to read as follows: S 631. ACTION BY CERTAIN MUTUAL FUNDS AND OTHER INSTITUTIONAL INVESTORS. (A) ANY MUTUAL FUND OR OTHER INSTITUTIONAL INVESTOR INCORPORATED UNDER THE LAWS OF THIS STATE OR WHICH MAINTAINS ITS PRINCIPAL PLACE OF BUSI- NESS IN THIS STATE, THAT IS DAMAGED IN CONNECTION WITH THE PURCHASE OR SALE OF A SECURITY AS A RESULT OF THE COMMISSION OF ANY ACT PROHIBITED BY SECTION THREE HUNDRED FIFTY-TWO-C OF THE GENERAL BUSINESS LAW, MAY BRING AN ACTION FOR DAMAGES AGAINST ANY PERSON, PARTNERSHIP, CORPO- RATION, COMPANY, LIMITED LIABILITY COMPANY, TRUST, OR ASSOCIATION THAT COMMITTED OR PARTICIPATED IN THE COMMISSION OF SUCH PROHIBITED ACT. (B) NO MUTUAL FUND OR OTHER INSTITUTIONAL INVESTOR THAT HAD FEWER THAN FIVE HUNDRED BENEFICIARIES AT THE TIME OF THE PURCHASE OR SALE OF THE SECURITY MAY BRING AN ACTION UNDER THIS SECTION. (C) WITH RESPECT TO ALLEGATIONS THAT A REPRESENTATION OR STATEMENT WAS FALSE, THE PLAINTIFF WITH RESPECT TO ALLEGATIONS REQUIRED TO PLEAD AND PROVE THAT THE PERSON WHO MADE SUCH STATEMENT: (I) KNEW THE TRUTH; (II) WITH REASONABLE EFFORT COULD HAVE KNOWN THE TRUTH; (III) MADE NO REASON- ABLE EFFORT TO ASCERTAIN THE TRUTH; OR (IV) DID NOT HAVE KNOWLEDGE CONCERNING THE REPRESENTATION OR STATEMENT MADE. WITH RESPECT TO ALLEGA- TIONS OF ANY OTHER NATURE, THE PLAINTIFF IS REQUIRED TO PLEAD AND PROVE THAT THE PERSON ACTED WITH NEGLIGENCE. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07536-03-9 A. 8646 2
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