Page:United States Statutes at Large Volume 49 Part 1.djvu/853

 808 "Applicant ." "Holding-company system ." "Associate co m- pany." "Affiliate." "Registered holding company ." "Mutual service company ." "Member company ." "Director." "Security." 74TH CONGRESS. SESS. I. CH. 687. AUGUST 26, 1935. special reports regarding the affiliations or intercorporate relation- ships of the applicant as the Commission may find necessary or appropriate to enable it to determine whether in the case of the applicant the conditions specified in clauses (i), (ii), and (iii) are satisfied during the period for which such order is effective. The Comm issio n, up on it s own moti on or upon appl icati on, s hall revok e the order declaring such company not to be a subsidiary company whenever in its judgment any condition specified in clause (i), (ii), or (iii) is not satisfied in the case of such company, or modify the terms of such order whenever in its judgment such modification is necessary to ensure that in the case of such company the conditions specified in clauses (i), (ii), and (iii) are satisfied during the period for which such order is effective. Any action of the Commission under the preceding sentence shall be by order. Any application under this paragraph may be made by the holding company or the company in respect of which the order is to be entered, but as used in this paragraph the term " applicant " means only the company in respect of which the order is to be entered. (9) " Holding-company system " means any holding company, toge ther with all i ts su bsidi ary c ompan ies, and a ll mu tual service companies (as defined in paragraph (13) of this subsection) of which such holding company or any subsidiary company thereof is a mem- ber company (as defined in paragraph (14) of th is subsection). (10) "Associate company" of a company means any company in the same holding-company system with such company. (11) "Affiliate" of a specified company means- (A) any person that directly or indirectly owns, controls, or holds with power to vote, 5 per centum or more of the outstand- ing voting securities of such specified company ; (B) any company 5 per centum or more of whose outstanding voting securit ies are owned, controlled, or held with power to vote, directly or indirectly, by such specified company ; (C) any individual who is an officer or director of such speci- fied company, or of any company which is an affiliate thereof under clause (A) of this paragraph ; and (D) any person or class of persons that the Commission deter- mines, after appropriate notice and opportunity for hearing, to stand in such relation to such specified company that there is liable to be such an absence of arm's-length bargaining in trans- actions betwee n them as to make it necessary or appropriate in the public in terest or for the pr otection o f investor s or consu mers tha t such per son be sub ject to th e obligati ons, dutie s, and lia bil- iti es imposed in this t itle upon affiliates of a comp any. (12) " Registered holding company " means a person whose regis- tration is in effe ct under s ection 5. (13) "Mutual service company" means a c ompany a pproved a s a mutual service company under section 13. (14) " Member company " means a company which is a member of an association or group of companies mutually served by a mutual service company. (15) " Director " means any director of a corporation or any individual who performs similar functions in respect of any company. (16) " S ec u r i t y " means, any note, draft, stock, treasury stock, bond, debenture, certifica te of inte rest or pa rticipatio n in any p rofit- sharing agreement or in any oil, gas, other mineral royalty or le ase, any co llat era l-tr ust cer tif icat e, preo rga niza tio n certificate or subscription, transferable share, investment contract, voting-trust