Sec. 3111. OWNERSHIP LIMITATIONS

216 words·~1 min read·/statute-compilations/comps-10710/sec-3111

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

## SEC. 3111 OWNERSHIP LIMITATIONS **[**[42 U.S.C. 2297h–9](/us/usc/t42/s2297h–9)**]** ###

(a)Securities Limitations 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)Ownership Limitation 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.

Connections1 off-index

1 reference not yet in our index

42 USC 2297h–9

Citation graph

cites case law

Sec. 3111

OWNERSHIP LIMITATIONS

Cite42 USC 2297h–9

Cites 1Cited by 0 across 0 sources