§2297h–9 — Title 42 The Public Health and Welfare | U.S. Code

Summary

Directors, officers, and employees cannot get stock or special rights to buy stock on better terms than the public. That rule applies to a public offering that privatizes the company, to any deal made before privatization, and to any purchase made before the private company’s directors are elected. When 100 percent of the company is sold to private investors, and for three years after, no one may own more than 10 percent of the voting stock. Exceptions are employee stock ownership plans, underwriters stabilizing the offering, and banks, broker‑dealers, or clearing agencies holding shares for others.

Title 42, §2297h–9

The Public Health and Welfare — Source: USLM XML via OLRC

(a)No director, officer, or employee of the Corporation may acquire any securities, or any rights to acquire any securities of the private corporation on terms more favorable than those offered to the general public—

(1)in a public offering designed to transfer ownership of the Corporation to private investors,

(2)pursuant to any agreement, arrangement, or understanding entered into before the privatization date, or

(3)before the election of the directors of the private corporation.

(b)Immediately following the consummation of the transaction or series of transactions pursuant to which 100 percent of the ownership of the Corporation is transferred to private investors, and for a period of three years thereafter, no person may acquire, directly or indirectly, beneficial ownership of securities representing more than 10 percent of the total votes of all outstanding voting securities of the Corporation. The foregoing limitation shall not apply to—

(1)any employee stock ownership plan of the Corporation,

(2)members of the underwriting syndicate purchasing shares in stabilization transactions in connection with the privatization, or

(3)in the case of shares beneficially held in the ordinary course of business for others, any commercial bank, broker-dealer, or clearing agency.

Editorial Notes

Codification Section was enacted as part of the USEC Privatization Act and also as part of the Omnibus Consolidated Rescissions and Appropriations Act of 1996, and not as part of the Atomic Energy Act of 1954 which comprises this chapter.

§2297h–9 Ownership limitations

Summary

Title 42, §2297h–9

Notes & Related Subsidiaries

Editorial Notes

Citations & Metadata