Page:United States Statutes at Large Volume 84 Part 2.djvu/87

 84 STAT. ]

PUBLIC LAW 91-547-DEC. 14, 1970

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"(7) all executive salaries and executive expenses and office rent of such investment company are paid by such investment adviser; and "(8) such investment company has only one class of securities outstanding, each unit of which has equal voting rights with every other unit." SEC. 6. Section 11(b) of the Investment Company Act of 1940 (15 Reorganization, U.S.C. 8 0 a - l l (b)) is amended to read as follows: ser/TfLres. " (b) The provisions of this section shall not apply to any offer made 54 Stat. sos. pursuant to any plan of reorganization, which is submitted to and requires the approval of the holders of at least a majority of the outstanding shares of the class or series to which the security owned by the offeree belongs." SEC. 7. Section 12(d) of the Investment Company Act of 1940 (15 companie°s^fnmi. U.S.C. 80a-12(d) is amended to read as follows: tations. " (d)(1)(A) I t shall be unlawful for any registered investment company (the 'acquiring company') and any company or companies controlled by such acquiring company to purchase or otherwise acquire any security issued by any other investment company (the 'acquired company'), and for any investment company (the 'acquiring company') and any company or companies controlled hj such acquiring company to purchase or otherwise acquire a n j security issued by any registered investment company (the 'acquired company'), if the acquiring company and any company or companies controlled by it immediately alter such purchase or acquisition own in the aggregate— " (i) more than 3 per centum of the total outstanding voting stock of the ac(juired company; " (ii) securities issued by the acquired company having an aggregate value in excess of 5 per centum of the value of the total assets of the acquiring company; or "(iii) securities issued by the acquired company and all other investment companies (other than Treasury stock of the acquiring company) having an aggregate value in excess of 10 per centum of the value of the total assets of the acquiring company. " (B) I t shall be unlawful for any registered open-end investment company (the 'acquired company'), any principal underwriter therefor, or any broker or dealer registered under the Securities Exchange Act of 1934, knowingly to sell or otherwise dispose of any security is- ^s stau ssi. sued by the acquired company to any other investment company (the 15 USC 78a. 'acquiring company') or any company or companies controlled by the acquiring company, if immediately after such sale or disposition— " (i) more than 3 per centum of the total outstanding voting stock of the acquired company is owned by the acquiring company and any company or companies controlled by it; or "(ii) more than 10 per centum of the total outstanding voting stock of the acquired company is owned by the acquiring company and other investment companies and companies controlled by them. " (C) I t shall be unlawful for any investment company (the 'acquiring company') and any company or companies controlled by the acquiring company to purchase or otherwise acquire any security issued by a registered closed-end investment company, if immediately after such purchase or acquisition the acquiring company, other investment companies having the same investment adviser, and companies controlled by such investment companies, own more than 10 per centum of the total outstanding voting stock of such closed-end company.

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