Page:United States Statutes at Large Volume 84 Part 2.djvu/86

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48 15 54 15

PUBLIC LAW 91-547-DEC. 14, 1970

Stat. 74,881. u s e 77a, 78a. Stat. 847. u s e 80b-l.

Board of directors, restrictions. 54 Stat. 806.

Bank collective funds for managing agency accounts, exemptions. Supra,

[84 STAT.

misleading with respect to any material fact, or has omitted to state in any such registration statement, application, or report any material fact which was required to be stated therein; or "(2) has willfully violated any provision of the Securities Act of 1933, or of the Securities Exchange Act of 1934, or of title II of this Act, or of this title, or of any rule or regulation under any of such statutes; or "(3) has willfully aided, abetted, counseled, commanded, induced, or procured the violation by any other person of the Securities Act of 1933, or of the Securities Exchange Act of 1934, or of title II of this Act, or of this title, or of any rule or regulation under any of such statutes." SEC. 5. (a) Section 10(a) of the Investment Company Act of 1940 (15 U.S.C. 80a-10 (a)) is amended to read as follows: " (a) Xo registered investment company shall have a board of directors more than 60 per centum of the members of which are persons who are interested persons of such registered company." (b) Section 10(b) of such Act (15 U.S.C. 80a-10(b)) is amended— (1) by striking out "After one year from the effective date of this title, no" and inserting in lieu thereof "No"; and (2) by striking out "affiliated", each place it appears in paragraph (2) and inserting in lieu thereof "interested". (c) Section 10(c) of such Act (15 U.S.C. 80a-10(c)) is amended to read as follows: "(c) No registered investment company shall have a majority of its board of directors consisting of persons who are officers, directors, or employees of any one bank, except that, if on March 15, 1940, any registered inA'estment company had a majority of its directors consisting of persons who are directors, officers, or employees of any one bank, such company may continue to have the same percentage of its board of directors consisting of persons who are directors, officers, or employees of such bank." (d) Section 10(d) of such Act (15 U.S.C. 80a-10(d)) is amended to read as follows: " (d) Notwithstanding subsections (a) and (b)(2) of this section, a registered investment company may have a board of directors all the members of which, except one, are interested persons of the investment adviser of such company, or are officers or employees of such company, if— " (1) such investment company is an open-end company; "(2) such investment adviser is registered under title II of this Act and is engaged principally in the business of rendering investment supervisory services as defined in title II; " (3) no sales load is charged on securities issued by such investment company; " (4) any premium over net asset value charged by such company upon the issuance of any such security, plus any discount from net asset value charged on redemption thereof, shall not in the aggregate exceed 2 per centum; "(5) no sales or promotion expenses are incurred by such registered company; but expenses incurred in complying with laws regulating the issue or sale of securities shall not be deemed sales or promotion expenses; "(6) such investment adviser is the only investment adviser to such investment company, and such investment adviser does not receive a management fee exceeding 1 per centum per annum of the value of such company's net assets averaged over the year or taken as of a definite date or dates within the year;

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