Title 15 — Commerce and TradeRelease 119-73
§80a–55 Qualifications of directors
Title 15 › Chapter CHAPTER 2D— - INVESTMENT COMPANIES AND ADVISERS › Subchapter SUBCHAPTER I— - INVESTMENT COMPANIES › § 80a–55
Summary
A business development company must have more than half of its directors or general partners be people who are not connected to the company. If a death, disqualification, or a genuine resignation makes the company fall below that majority, the rule can be put on hold for 90 days or longer if the Securities and Exchange Commission allows it, so long as investor protection is not harmed.
Full Legal Text
Title 15, §80a–55
Commerce and Trade — Source: USLM XML via OLRC
(a)A majority of a business development company’s directors or general partners shall be persons who are not interested persons of such company.
(b)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.
Reference
Citations & Metadata
Citation
15 U.S.C. § 80a–55
Title 15 — Commerce and Trade
Last Updated
Apr 6, 2026
Release point: 119-73