
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 47USC734]

 
          TITLE 47--TELEGRAPHS, TELEPHONES, AND RADIOTELEGRAPHS
 
               CHAPTER 6--COMMUNICATIONS SATELLITE SYSTEM
 
          SUBCHAPTER III--COMMUNICATIONS SATELLITE CORPORATION
 
Sec. 734. Financing of corporation


(a) Capital stock; amount of issue; no par value shares; voting rights; 
        dividends; price and public distribution of initial offering; 
        shareholder eligibility

    The corporation is authorized to issue and have outstanding, in such 
amounts as it shall determine, shares of capital stock, without par 
value, which shall carry voting rights and be eligible for dividends. 
The shares of such stock initially offered shall be sold in a manner to 
encourage the widest distribution to the American public. Subject to the 
provisions of subsections (b) and (d) of this section, shares of stock 
offered under this subsection may be issued to and held by any person.

(b) ``Authorized carrier'' defined; shareholder eligibility; voting 
        rights limitation of authorized carriers and other stockholders

    (1) For the purposes of this section the term ``authorized carrier'' 
shall mean a communications common carrier which is specifically 
authorized or which is a member of a class of carriers authorized by the 
Commission to own shares of stock in the corporation upon a finding that 
such ownership will be consistent with the public interest, convenience, 
and necessity.
    (2) Only those communications common carriers which are authorized 
carriers shall own shares of stock in the corporation at any time, and 
no other communications common carrier shall own shares either directly 
or indirectly through subsidiaries or affiliated companies, nominees, or 
any persons subject to its direction or control. At no time after the 
initial issue is completed shall the aggregate of the shares of voting 
stock of the corporation owned by authorized carriers directly or 
indirectly through subsidiaries or affiliated companies, nominees, or 
any persons subject to their direction or control exceed 50 per centum 
of such shares issued and outstanding.
    (3) At no time shall any stockholder who is not an authorized 
carrier, or any syndicate or affiliated group of such stockholders, own 
more than 10 per centum of the shares of voting stock of the corporation 
issued and outstanding.

(c) Nonvoting security issues and certificates of indebtedness; rate 
        base

    The corporation is authorized to issue, in addition to the stock 
authorized by subsection (a) of this section, nonvoting securities, 
bonds, debentures, and other certificates of indebtedness as it may 
determine. Such nonvoting securities, bonds, debentures, or other 
certificates of indebtedness of the corporation as a communications 
common carrier may own shall be eligible for inclusion in the rate base 
of the carrier to the extent allowed by the Commission. The voting stock 
of the corporation shall not be eligible for inclusion in the rate base 
of the carrier.

(d) Alien share ownership limitation

    Not more than an aggregate of 20 per centum of the shares of stock 
of the corporation authorized by subsection (a) of this section which 
are held by holders other than authorized carriers may be held by 
persons of the classes described in subsection (a) and paragraphs (1) 
through (4) of subsection (b) of section 310 of this title.

(e) Inspection and copying rights

    The requirement of section 345(b) \1\ of the District of Columbia 
Business Corporation Act (D.C. Code, sec. 29-345(b)) as to the 
percentage of stock which a stockholder must hold in order to have the 
rights of inspection and copying set forth in that subsection shall not 
be applicable in the case of holders of the stock of the corporation, 
and they may exercise such rights without regard to the percentage of 
stock they hold.
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    \1\ So in original. Probably should be section ``45(b)''.
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(f) Transfer and distribution of shares among authorized carriers

    Upon application to the Commission by any authorized carrier and 
after notice and hearing, the Commission may compel any other authorized 
carrier which owns shares of stock in the corporation to transfer to the 
applicant, for a fair and reasonable consideration, a number of such 
shares as the Commission determines will advance the public interest and 
the purposes of this chapter. In its determination with respect to 
ownership of shares of stock in the corporation, the Commission, 
whenever consistent with the public interest, shall promote the widest 
possible distribution of stock among the authorized carriers.

(Pub. L. 87-624, title III, Sec. 304, Aug. 31, 1962, 76 Stat. 424; Pub. 
L. 97-410, Sec. 5, Jan. 3, 1983, 96 Stat. 2045; Pub. L. 103-414, title 
III, Secs. 303(b)(2), (3), 304(b)(3), Oct. 25, 1994, 108 Stat. 4296, 
4297.)


                               Amendments

    1994--Subsec. (a). Pub. L. 103-414, Sec. 304(b)(3), struck out ``at 
a price not in excess of $100 for each share and'' after ``shall be 
sold''.
    Subsec. (d). Pub. L. 103-414, Sec. 303(b)(2), substituted 
``subsection (a) and paragraphs (1) through (4) of subsection (b) of 
section 310 of this title'' for ``paragraphs (1), (2), (3), (4), and (5) 
of section 310(a) of this title''.
    Subsec. (e). Pub. L. 103-414, Sec. 303(b)(3), substituted ``section 
345(b)'' for ``section 45(b)'' and ``sec. 29-345(b)'' for ``sec. 29-
920(b)''.
    1983--Subsec. (b)(2). Pub. L. 97-410 struck out provision which 
related to purchases of reserved shares of stock by authorized carriers.

                  Section Referred to in Other Sections

    This section is referred to in sections 702, 721 of this title.
