15 U.S.C. § 77cc — Directors of Corporation; appointment, term of office, and removal

submitted 93 years ago by ch. 38 to r/title-15-COMMERCE-AND-TRADE · 321 words · no verdicts yet

in plain englishAI-generated · not legal advice

This law sets up the board that runs the Corporation of Foreign Security Holders. The Federal Trade Commission appoints six directors to staggered terms. A director can be removed by a two-thirds board vote after notice and a hearing.

The Corporation's control and management rests in a board of six directors, appointed and holding office as follows. As soon as possible after this chapter takes effect, the Federal Trade Commission (called the "Commission" in this subchapter) appoints six directors and picks a chairman and vice chairman from among them. After the first chairman and vice chairman stop being directors, the board itself elects their successors as chairman and vice chairman. Of the first six directors appointed, two serve two-year terms, two serve four-year terms, and two serve six-year terms from the date this chapter takes effect -- the Commission decides which term each director gets when it appoints them. After that, the Commission appoints each new director for a six-year term, starting when the prior director's term expires -- except that someone appointed to fill a vacancy that opens up before a term ends only serves the rest of that unfinished term. No one is eligible to serve as a director if, within the five years before, they had any direct or indirect interest in a corporation, company, partnership, bank, or association that sold or offered foreign securities for sale. A director's seat becomes vacant if the board, at a meeting called specifically for that purpose, votes by at least a two-thirds majority to remove that director -- but the director being removed must get seven days' notice of the meeting and the chance to be heard.

the actual law source: uscode.house.gov ↗public domain

The control and management of the Corporation shall be vested in a board of six directors, who shall be appointed and hold office in the following manner: As soon as practicable after the date this chapter takes effect the Federal Trade Commission (hereinafter in this subchapter called “Commission”) shall appoint six directors, and shall designate a chairman and a vice chairman from among their number. After the directors designated as chairman and vice chairman cease to be directors, their successors as chairman and vice chairman shall be elected by the board of directors itself. Of the directors first appointed, two shall continue in office for a term of two years, two for a term of four years, and two for a term of six years, from the date this chapter takes effect, the term of each to be designated by the Commission at the time of appointment. Their successors shall be appointed by the Commission, each for a term of six years from the date of the expiration of the term for which his predecessor was appointed, except that any person appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed only for the unexpired term of such predecessor. No person shall be eligible to serve as a director who within the five years preceding has had any interest, direct or indirect, in any corporation, company, partnership, bank, or association which has sold or offered for sale any foreign securities. The office of a director shall be vacated if the board of directors shall, at a meeting specially convened for that purpose, by resolution passed by a majority of at least two-thirds of the board of directors, remove such member from office, provided that the member whom it is proposed to remove shall have seven days’ notice sent to him of such meeting, and that he may be heard.

Source credit: (May 27, 1933, ch. 38, title II, § 202, 48 Stat. 93.)

history & why it existsrecord from the source credit

1933Enacted · Act of May 27, 1933, ch. 38 · 48 Stat. 93

A history note hasn’t been published yet. The record shows enactment by ch. 38 on 1933-05-27.

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