Title 15, Commerce and TradeRelease 119-110
§80a–55 Qualifications of Directors
Title 15 › CHAPTER 2D — INVESTMENT COMPANIES AND ADVISERS › SUBCHAPTER I — INVESTMENT COMPANIES › § 80a–55
Summary
A business development company must have most of its directors or general partners be people who are not "interested persons" of the company (people who have certain ties to the company). If a death, disqualification, or a real resignation causes the company to lose that majority or fail the related director rule in section 80a–15(f)(1), the Commission can pause the rule for 90 days or longer, on its own or if someone asks, as long as investors remain protected.
Full Legal Text
Title 15, §80a–55
Commerce and Trade, Source: USLM XML via OLRC
(a)Non-interested persons
A majority of a business development company’s directors or general partners shall be persons who are not interested persons of such company.
(b)Vacancies; suspension of provisions
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
Sep 22, 2026
Release point: 119-110