15 U.S.C. § 80a–55 — Qualifications of directors
submitted 86 years ago by Pub. L. 96-477 to r/title-15-COMMERCE-AND-TRADE · 116 words · no verdicts yet
Most of a business development company's directors or general partners must not be "interested persons" of the company. If a death, disqualification, or resignation breaks that rule, the company gets 90 days — or longer, with SEC approval — to fix it.
(a) Non-interested persons. A majority of a business development company's directors or general partners must be people who are not "interested persons" of the company.
(b) Vacancies; suspension of provisions. If, because a director or general partner died, was disqualified, or resigned in good faith, the company no longer meets the (a) requirement, or the director requirement in section 80a–15(f)(1), that requirement is suspended for 90 days — or for a longer period the SEC allows, on its own motion or on application, as long as doing so isn't inconsistent with protecting investors.
A majority of a business development company’s directors or general partners shall be persons who are not interested persons of such company.
If, by reason of the death, disqualification, or bona fide resignation of any director or general partner, a business development company does not meet the requirements of subsection (a) of this section, or the requirements of section 80a–15(f)(1) of this title with respect to directors, the operation of such provisions shall be suspended for a period of 90 days or for such longer period as the Commission may prescribe, upon its own motion or by order upon application, as not inconsistent with the protection of investors.
Source credit: (Aug. 22, 1940, ch. 686, title I, § 56, as added Pub. L. 96–477, title I § 105, Oct. 21, 1980, 94 Stat. 2280.)
- 1940Enacted · Pub. L. 96-477 · 94 Stat. 2280
A history note hasn’t been published yet. The record shows enactment by Pub. L. 96-477 on 1940-08-22.
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