Page:United States Statutes at Large Volume 84 Part 2.djvu/98

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PUBLIC LAW 91-547-DEC. 14, 1970

[84 STAT.

the outstanding voting securities at any meeting called for the purpose to terminate such employment forthwith without any penalty; and "(4) such certificate or report of such accountant shall be addressed both to the board of directors of such registered company and to the security holders thereof. Vacancy. j ^ j-j^g selection of an accountant has been rejected pursuant to paragraph (2) or his employment terminated pursuant to paragraph (3), the vacancy so occurring may be filled by a vote of a majority of the outstanding voting securities, either at the meeting at which the rejection or termination occurred or, if not so filled, at a subsequent meeting which shall be called for the purpose. In the case of a common-law 15 USC 80a-i6 ^^'^^t of the character described in section 16(b), no ratification of the employment of such accountant shall be required but such employment may be terminated and such accountant removed by action of the holders of record of a majority of the outstanding shares of beneficial interest in such trust in the same manner as is provided in section 16(b) in respect of the removal of a trustee, and all the provisions therein contained as to the calling of a meeting shall be applicable. I n the event of such termination and removal, the vacancy so occurring may be filled by action of the holders of record of a majority of the shares of beneficial interest either at the meeting, if any, at which such termination and removal occurs, or by instruments in writing filed with the custodian, or if not so filed within a reasonable time then at a subsequent meeting which shall be called by the trustees for the Ante, p. 1413. pnrpose. The provisions of paragraph (42) of section 2(a) as to a majority shall be applicable to the vote cast at any meeting of the shareholders of such a trust held pursuant to this subsection." SEC. 19. Section 33 of the Investment Company Act of 1940 (15 54 Stat. 839. JT §,(> 80a-32) is amended to read as follows: "FILING OF DOCUMENTS WITH COMMISSION I N CIVIL ACTIONS

33. Every registered investment company which is a party and every affiliated person of such company who is a party defendant to any action or claim by a registered investment company or a security holder thereof in a derivative or representative cap>acity against an officer, director, investment adviser, trustee, or depositor of such company, shall file with the Commission, unless already so filed, (1) a copy of ail pleadings, verdicts, or judgments filed with the court or served in connection with such action or claim, (2) a copy of any proposed settlement, compromise, or discontinuance of such action, and (3) a copy of such motions, transcripts, or other documents filed in or issued by the court, or served in connection with such action or claim as may be requested in writing by the Commission. If any document referred to in clause (1) or (2) — " (A) is delivered to such company or party defendant, such document shall be filed with the Commission not later than ten days after the receipt thereof; or " (B) is filed in such court or delivered by such company or party defendant, such document shall be filed with the Commission not later than five days after such filing or delivery." SEC. 20. Section 36 of the Investment Company Act of 1940 (15 U.S.C. 80a-35) is amended to read as follows: ''SEC.

u. BREACH OF FIDUCIARY DUTY

"SEC. 36. (a) The Commission is authorized to bring an action in the proper district court of the United States, or in the United States court of any territory or other place subject to the jurisdiction of the

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