Title 15, Commerce and TradeRelease 119-73not60
§80a–55 Qualifications of Directors
Title 15 › Chapter 2D— INVESTMENT COMPANIES AND ADVISERS › Subchapter I— INVESTMENT COMPANIES › § 80a–55
Summary
Most of a business development company’s directors or general partners must be people who are not connected to the company. If the company loses that majority because a director or partner dies, becomes disqualified, or truly resigns, the Securities and Exchange Commission can put that rule on hold for 90 days or longer. The SEC can act on its own or after the company asks, as long as investor protection is maintained.
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 3, 2026
Release point: 119-73not60