Telegraphs, Telephones, and Radiotelegraphs - 47 USC Section 212

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01/19/04

Sec. 212. Interlocking directorates; officials dealing in
securities

      It shall be unlawful for any person to hold the position of
    officer or director of more than one carrier subject to this
    chapter, unless such holding shall have been authorized by order of
    the Commission, upon due showing in form and manner prescribed by
    the Commission, that neither public nor private interests will be
    adversely affected thereby: Provided, That the Commission may
    authorize persons to hold the position of officer or director in
    more than one such carrier, without regard to the requirements of
    this section, where it has found that one of the two or more
    carriers directly or indirectly owns more than 50 per centum of the
    stock of the other or others, or that 50 per centum or more of the
    stock of all such carriers is directly or indirectly owned by the
    same person. After this section takes effect it shall be unlawful
    for any officer or director of any carrier subject to this chapter
    to receive for his own benefit directly or indirectly, any money or
    thing of value in respect of negotiation, hypothecation, or sale of
    any securities issued or to be issued by such carrier, or to share
    in any of the proceeds thereof, or to participate in the making or
    paying of any dividends of such carriers from any funds properly
    included in capital account.

                                AMENDMENTS                            
      1994 - Pub. L. 103-414 substituted "It shall" for "After sixty
    days from June 19, 1934, it shall".
      1956 - Act Aug. 2, 1956, inserted proviso that Commission may
    authorize persons to hold position of officer or director in more
    than one carrier, where carrier owns more than 50 percent of the
    stock of the other carriers, or that 50 percent or more of the
    stock of all such carriers is owned by the same person, struck out
    "such" before "carrier" in sentence after proviso, inserted
    "subject to this chapter" after that word, and substituted
    "carriers" for "carrier" toward end of said sentence.

Last modified: June 19, 2006