Subparts D Through G-[Reserved] Subpart H-Authorization To Own Stock in the Communications Satellite Corporation AUTHORITY: The provisions of this Subpart H issued under secs. 101-404, 76 Stat. 419427; 47 U.S.C. 701-744. SOURCE: The provisions of this Subpart H appear at 28 F.R. 13037, Dec. 5, 1963, except as otherwise noted. § 25.501 Scope of this subpart. The provisions of this subpart govern the administration of section 304 of the Communications Satellite Act of 1962. These rules provide the procedure by which Commission authorization may be obtained for the purchase of stock in the corporation, the form and content of the application, and the scope of the authorization which may be granted. § 25.502 Definitions. (a) No communications common carrier, as defined in § 25.103(a), shall purchase, obtain, own, or otherwise hold, at any time, either directly or indirectly, through a subsidiary or affiliated company, nominee, person or other entity subject to its control or direction, shares of stock in the corporation created pursuant to the Communications Satellite Act of 1962 unless authorized to do so by the Commission. (b) No individual, partnership, association, joint-stock company, trust, corporation, or other entity which owns or controls, directly or indirectly, or is under direct or indirect common control with, any such carrier, shall purchase, obtain, own, or otherwise hold, at any time, shares of stock in the corporation in its own name or right unless authorization previously shall have been obtained from the Commission by such entity or on behalf of such entity. §§ 25.506-25.509 [Reserved] § 25.510 Transfer of stock by author. ized carriers. (a) No authorized carrier prior to June 1, 1965, may sell, pledge, transfer or make any other disposition of shares of stock of the Corporation to any person or entity other than another authorized carrier except pursuant to an order of the Commission authorizing such sale, pledge, transfer, or other disposition based upon a finding that the transaction is compatible with the purposes and objectives of the Communications Satellite Act of 1962 and is consistent with the public interest, convenience, and necessity. (b) Applications under this section shall be submitted not later than 15 days prior to the proposed date of the transaction and shall contain or incorporate the following information: (1) Name and address of the applicant authorized carrier. (2) Any material change to the date of the instant application in the information required by § 25.520(a) (3), (4), (5) and (8) filed at the time of application for authorization to purchase stock of the Communications Satellite Corporation. (3) Copy of applicant's current financial statement, annual report, or such other financial information to support the application. (4) Copy of any existing or proposed agreement relating to the transaction or the substance of any oral arrangements made. (5) Statement containing full and complete disclosure with regard to the real party or parties in interest in the stock sought to be sold, pledged, transferred or otherwise disposed of. (6) Statement of the reasons for the transaction and for the applicant's belief that the proposed transaction is compatible with the purposes and objectives of the Satellite Act, is consistent with the public interest, convenience, and necessity, and is in furtherance of legit!mate business purposes and not for speculation. [29 F.R. 9834, July 22, 1964] § 25.511 Transfer of stock by the Cor poration. The Corporation, prior to June 1, 1965, shall not transfer or cause to be transferred on its books, any shares of stock issued to an authorized carrier or for which a series II stock certificate was issued, nor shall the Corporation issue, or cause to be issued, any stock certificates reflecting the transfer of shares from an authorized carrier to any entity other than another authorized carrier, unless the Corporation is in receipt of an order of the Commission authorizing the transaction. [29 FR. 9835, July 22, 1964] §§ 25.512-25.514 [Reserved] $25.515 Method of securing authorization. Any person, corporation, or other entity, described in § 25.505, desiring authorization to purchase, obtain, own, or otherwise hold shares of stock in the corporation, shall file an application therefor with the Commission in accordance with §§ 25.520-25.525. [Reserved] §§ 25.516-25.519 $25.520 Contents of application. Every request for authorization submitted under this subpart shall contain or incorporate the following information: (a) If applicant is a corporation: (1) The name and address of the applicant. (2) Place of incorporation. (3) Names and addresses of directors of applicant. (4) Names and addresses of applicant's ten principal stockholders and percentages of stock of applicant owned by each. (5) Names and addresses of principal officers of applicant and percentage of stock of applicant owned by each. (6) A copy of applicant's annual report to stockholders for the last full year of its operations covered by such report. (7) A copy of applicant's corporate charter. (If such charter is already on file with the Commission, applicant may 80 state.) (8) Names and addresses of all companies in which applicant has financial interests, the nature and extent of such Interests, and a description of the principal business and activities of such companies. (9) Description of the intrastate, interstate, and foreign communication services rendered by applicant itself or Jointly with other carriers, and the state or states or other political subdivisions in which applicant's operations are conducted. (10) Statement of why applicant believes a grant of its application will be consistent with the public interest, convenience, and necessity. (b) If applicant is an individual or business organization other than a corporation: (1) Name and address of the applicant. (2) Name and address of each person having a financial interest in the entity and a description of the nature and extent of such interest. (3) Principal place of business of applicant. (4) Copy of applicant's balance sheet and income statement for the last full year of applicant's operations. (5) Description of the intrastate, interstate, and foreign communications services rendered by applicant itself or jointly with other carriers and the state or states or other politica' subdivisions in which applicant's operations are conducted. (6) Statement of why applicant believes a grant of its application will be consistent with the public interest, convenience, and necessity. (c) If application is made on behalf of any entity other than the applicant itself, the application shall so state and shall include or incorporate the information for said entity specified in paragraph (a) or (b) of this section as appropriate. § 25.521 Who may sign applications. (a) Except as provided in paragraph (b) of this section, every application or amendment thereto shall be personall; signed by the applicant, if the applicant is an individual; by one of the partners, if the applicant is a partnership; by an officer if the applicant is a corporation; or by a member who is an officer, if the applicant is an unincorporated association. (b) Applications and amendments thereto may be signed by the applicant's attorney in case of the applicant's physical disability, or in case the applicant does not reside in any of the contiguous 48 states of the United States or in the District of Columbia. The attorney shall in that event separately set forth the reason why the application is not signed by the applicant. In addition, if any matter is stated on the basis of the attorney's belief only (rather than his knowledge), he shall separately set forth his reasons for believing that such statements are true. (c) Only the original of applications and amendments thereto need be signed; copies may be conformed. (d) Applications and amendments thereto need not be signed under oath; however, wilful false statements made therein, are punishable by fine and imprisonment, U.S. Code, Title 18, section 1001, and by appropriate administrative sanctions, including refusal or revocation of authorization to purchase, obtain, own, or otherwise hold shares of stock in the corporation. § 25,522 Full disclosures. Each application shall contain full and complete disclosures with regard to the real party or parties in interest and as to all matters and things required to be disclosed in the application. § 25.523 Form of application, number of copies, fees, etc. (a) The original application and five copies thereof shall be filed with the Commission. Each copy shall bear the dates and signatures that appear on the original and shall be complete in itself. (b) All applications shall be on paper 8 by 101⁄2 with left hand margin not less than 1/2 inches wide. The impression shall be on one side of the paper only and shall be double spaced. All applications and accompanying papers, except charts, shall be typewritten or prepared by mechanical processing methods. All copies must be clearly legible. (c) Each application for authorization shall be accompanied by the fee prescribed in Subpart G of Part 1 of this chapter. [28 F.R. 13037, Dec. 5, 1963, as amended at 30 F.R. 14808, Nov. 30, 1965] afforded 10 days in which to file reply comments. If upon examination of any such application (or amendment thereto) together with any comments filed with respect thereto the Commission is unable to make a finding that a grant of authorization will be consistent with the public interest, convenience, and necessity, it will deny the application or institute such further proceedings as in its discretion appear appropriate. § 25.526 Amendments. The Commission may at any time order or require the applicant to amend his application so as to make it more definite and certain or to submit such additional documents, or statements, as in the judgment of the Commission may be necessary. § 25.527 Defective applications. (a) Applications not in accordance with the applicable rules in this chapter may be deemed defective and returned by the Commission without acceptance of such applications for filing and consideration. (b) The assignment of a file number, if any, to an application is for the administrative convenience of the Commission and does not indicate the acceptance of the application for filing and consideration. §§ 25.528-25.529 [Reserved] (a) In order to effectuate the purpose of the Communications Satellite Act of 1962 of promoting the widest possible distribution of stock among the authorized carriers, each authorization issued pursuant to this subpart by the Commission shall be so conditioned that in the event any voting stock authorized to be issued by the corporation, which is reserved and available for purchase by authorized carriers, is oversubscribed, the Commission may specify the dollar amount or percentage of such stock which may be purchased pursuant to such authorization. (b) All authorizations shall be issued to, or on behalf of the named applicant and shall not be transferable. (c) The Commission may attach such other conditions to the authorization as it determines to be consistent with the public interest, convenience, and necessity. § 25.531 Revocation of authorization. Where any person to whom an authorization has been issued pursuant to this subpart has willfully failed to make a complete disclosure with regard to the real party or parties in interest or as to all matters and things required to be disclosed in the application, the Commission at any time may order such person to show cause why such authorization should not be revoked. Such person will be given reasonable opportunity to respond in writing to the order to show cause. Upon consideration of the response, the Commission will determine whether an order of revocation should issue or whether further proceedings, as may be appropriate, should be instituted. If an order of revocation is issued, immediate disposition shall be made of the shares of stock purchased or otherwise obtained pursuant to said authorization. PART 31-UNIFORM SYSTEM OF ACCOUNTS FOR CLASS A AND CLASS B TELEPHONE COMPANIES GENERAL INSTRUCTIONS 31.120:2 31.121 31.122 |