View all text of Subchapter I [§ 80a-1 - § 80a-64]
§ 80a–20. Proxies; voting trusts; circular ownership
(a) Prohibition on use of means of interstate commerce for solicitation of proxies
(b) Prohibition on use of means of interstate commerce for sale of voting-trust certificates
(c) Prohibition on purchase of securities knowingly resulting in cross-ownership or circular ownership
No registered investment company shall purchase any voting security if, to the knowledge of such registered company, cross-ownership or circular ownership exists, or after such acquisition will exist, between such registered company and the issuer of such security. Cross-ownership shall be deemed to exist between two companies when each of such companies beneficially owns more than 3 per centum of the outstanding voting securities of the other company. Circular ownership shall be deemed to exist between two companies if such companies are included within a group of three or more companies, each of which—
(1) beneficially owns more than 3 per centum of the outstanding voting securities of one or more other companies of the group; and
(2) has more than 3 per centum of its own outstanding voting securities beneficially owned by another company, or by each of two or more other companies, of the group.
(d) Duty to eliminate existing cross-ownership or circular ownership
(Aug. 22, 1940, ch. 686, title I, § 20, 54 Stat. 822; Pub. L. 100–181, title VI, § 614, Dec. 4, 1987, 101 Stat. 1262.)