Source: https://www.law.cornell.edu/cfr/text/17/270.12b-1
Timestamp: 2016-12-09 19:23:50
Document Index: 556948995

Matched Legal Cases: ['art 270', '§ 270', '§ 30', '§\u202f14102', '§ 37', '§ 77', '§ 77', '§ 77', '§ 77', '§ 77', '§ 77', '§ 77', '§ 77', '§ 77', '§ 77', '§ 78', '§ 78', '§ 78', '§ 78', '§ 78', '§ 78', '§ 78', '§ 78', '§ 78', '§ 79', '§ 79', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', '§ 80', 'art 270']

17 CFR 270.12b-1 - Distribution of shares by registered open-end management investment company. | US Law | LII / Legal Information Institute
CFR › Title 17 › Chapter II › Part 270 › Section 270.12b-1 17 CFR 270.12b-1 - Distribution of shares by registered open-end management investment company.
(1) Except as provided in this section, it shall be unlawful for any registered open-end management investment company (other than a company complying with the provisions of section 10(d) of the Act (15 U.S.C. 80a-10(d))) to act as a distributor of securities of which it is the issuer, except through an underwriter;
(2) For purposes of this section, such a company will be deemed to be acting as a distributor of securities of which it is the issuer, other than through an underwriter, if it engages directly or indirectly in financing any activity which is primarily intended to result in the sale of shares issued by such company, including, but not necessarily limited to, advertising, compensation of underwriters, dealers, and sales personnel, the printing and mailing of prospectuses to other than current shareholders, and the printing and mailing of sales literature;
(b) A registered, open-end management investment company (“Company”) may act as a distributor of securities of which it is the issuer: Provided, That any payments made by such company in connection with such distribution are made pursuant to a written plan describing all material aspects of the proposed financing of distribution and that all agreements with any person relating to implementation of the plan are in writing: And further provided, That:
(1) Such plan has been approved by a vote of at least a majority of the outstanding voting securities of such company, if adopted after any public offering of the company's voting securities or the sale of such securities to persons who are not affiliated persons of the company, affiliated persons of such persons, promoters of the company, or affiliated persons of such promoters; (2) Such plan, together with any related agreements, has been approved by a vote of the board of directors of such company, and of the directors who are not interested persons of the company and have no direct or indirect financial interest in the operation of the plan or in any agreements related to the plan, cast in person at a meeting called for the purpose of voting on such plan or agreements; (3) Such plan or agreement provides, in substance:
(i) That it shall continue in effect for a period of more than one year from the date of its execution or adoption only so long as such continuance is specifically approved at least annually in the manner described in paragraph (b)(2) of this section;
(ii) That any person authorized to direct the disposition of monies paid or payable by such company pursuant to the plan or any related agreement shall provide to the company's board of directors, and the directors shall review, at least quarterly, a written report of the amounts so expended and the purposes for which such expenditures were made; and
(iii) In the case of a plan, that it may be terminated at any time by vote of a majority of the members of the board of directors of the company who are not interested persons of the company and have no direct or indirect financial interest in the operation of the plan or in any agreements related to the plan or by vote of a majority of the outstanding voting securities of such company;
(iv) In the case of an agreement related to a plan:
(A) That it may be terminated at any time, without the payment of any penalty, by vote of a majority of the members of the board of directors of such company who are not interested persons of the company and have no direct or indirect financial interest in the operation of the plan or in any agreements related to the plan or by vote of a majority of the outstanding voting securities of such company on not more than sixty days' written notice to any other party to the agreement, and
(B) For its automatic termination in the event of its assignment;
(4) Such plan provides that it may not be amended to increase materially the amount to be spent for distribution without shareholder approval and that all material amendments of the plan must be approved in the manner described in paragraph (b)(2) of this section; and
(5) Such plan is implemented and continued in a manner consistent with the provisions of paragraphs (c), (d), and (e) of this section; (c) A registered open-end management investment company may rely on the provisions of paragraph (b) of this section only if its board of directors satisfies the fund governance standards as defined in § 270.0-1(a)(7);
(d) In considering whether a registered open-end management investment company should implement or continue a plan in reliance on paragraph (b) of this section, the directors of such company shall have a duty to request and evaluate, and any person who is a party to any agreement with such company relating to such plan shall have a duty to furnish, such information as may reasonably be necessary to an informed determination of whether such plan should be implemented or continued; in fulfilling their duties under this paragraph the directors should consider and give appropriate weight to all pertinent factors, and minutes describing the factors considered and the basis for the decision to use company assets for distribution must be made and preserved in accordance with paragraph (f) of this section;
For a discussion of factors which may be relevant to a decision to use company assets for distribution, see Investment Company Act Releases Nos. 10862, September 7, 1979, and 11414, October 28, 1980.
(e) A registered open-end management investment company may implement or continue a plan pursuant to paragraph (b) of this section only if the directors who vote to approve such implementation or continuation conclude, in the exercise of reasonable business judgment and in light of their fiduciary duties under state law and under sections 36(a) and (b) (15 U.S.C. 80a-35 (a) and (b)) of the Act, that there is a reasonable likelihood that the plan will benefit the company and its shareholders;
(f) A registered open-end management investment company must preserve copies of any plan, agreement or report made pursuant to this section for a period of not less than six years from the date of such plan, agreement or report, the first two years in an easily accessible place;
[45 FR 73905, Nov. 7, 1980, as amended at 60 FR 11885, Mar. 2, 1995; 61 FR 49011, Sept. 17, 1996; 62 FR 51765, Oct. 3, 1997; 66 FR 3758, Jan. 16, 2001; 69 FR 46389, Aug. 2, 2004; 69 FR 54733, Sept. 9, 2004; 78 FR 79299, Dec. 30, 2013] This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.United States CodeU.S. Code: Title 15 - COMMERCE AND TRADE§ 30 - Repealed. Pub. L. 107–273, div. C, title IV, § 14102(f), Nov. 2, 2002, 116 Stat. 1922§ 37 - Immunity from antitrust laws§ 77f - Registration of securities§ 77g - Information required in registration statement§ 77h - Taking effect of registration statements and amendments thereto§ 77j - Information required in prospectus§ 77q - Fraudulent interstate transactions§ 77s - Special powers of Commission§ 77eee - Securities required to be registered under Securities Act§ 77ggg - Qualification of indentures covering securities not required to be registered§ 77nnn - Reports by obligor; evidence of compliance with indenture provisions§ 77sss - Rules, regulations, and orders§ 78c - Definitions and application§ 78d - Securities and Exchange Commission§ 78l - Registration requirements for securities§ 78m - Periodical and other reports§ 78n - Proxies§ 78o - Registration and regulation of brokers and dealers§ 78w - Rules, regulations, and orders; annual reports§ 78bb - Effect on existing law§ 78ee - Transaction fees§ 79c§ 79t§ 80a-1§ 80a-2§ 80a-3§ 80a-3a§ 80a-4§ 80a-5§ 80a-6§ 80a-7§ 80a-8§ 80a-9§ 80a-10§ 80a-11§ 80a-12§ 80a-13§ 80a-14§ 80a-15§ 80a-16§ 80a-17§ 80a-18§ 80a-19§ 80a-20§ 80a-21§ 80a-22§ 80a-23§ 80a-24§ 80a-25§ 80a-26§ 80a-27§ 80a-28§ 80a-29§ 80a-30§ 80a-31§ 80a-32§ 80a-33§ 80a-34§ 80a-35§ 80a-36§ 80a-37§ 80a-38§ 80a-39§ 80a-40§ 80a-41§ 80a-42§ 80a-43§ 80a-44§ 80a-45§ 80a-46§ 80a-47§ 80a-48§ 80a-49§ 80a-50§ 80a-51§ 80a-52§ 80a-53§ 80a-54§ 80a-55§ 80a-56§ 80a-57§ 80a-58§ 80a-59§ 80a-60§ 80a-61§ 80a-62§ 80a-63§ 80a-64§ 80b-3§ 80b-4§ 80b-11§ 80c-39§ 80c-89§ 80w-37
Title 17 published on 2015-04-01The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 17 CFR Part 270 after this date.2016-11-18; vol. 81 # 223 - Friday, November 18, 201681 FR 81870 - Investment Company Reporting Modernization