PUBLIC LAW 99-514—OCT. 22, 1986
100 STAT. 2881
holding period) is amended by striking out "then" and inserting in lieu thereof "than". (2) Section 497803)(1) is amended by striking out "paragraph (1)" and inserting in lieu thereof "subsection (a)". (3) Section 4978(c) is amended by striking out "section 1042(a)(2)(B)" and inserting in lieu thereof "section 1042(b)(3)". (4) Section 4978(d)(1)(C) is amended by striking out "section 72(m)(5)" and inserting in lieu thereof "section 72(m)(7)". (5) Section 4978(e)(2) is amended by striking out "section I 1042(b)(1)" and inserting in lieu thereof "section 1042(c)(1)". (6) Section 4978(e)(3) is amended by striking out "section 1042(b)(l)" and inserting in lieu thereof "section 1042(c)(2)". (7) Section 4978(d) (relating to dispositions to which section does not apply) is amended by adding at the end thereof the following new paragraph: "(3) LIQUIDATION OF CORPORATION INTO COOPERATIVE.—In the
- case of any exchange of qualified securities pursuant to the
' liquidation of the corporation issuing qualified securities into " the eligible worker-owned cooperative in a transaction which meets the requirements of section 332 (determined by substituting '100 percent' for '80 percent' each place it appears in section 332(b)(1)), such exchange shall not be treated as a disposition for ^ purposes of this section." (f) OTHER AMENDMENTS.—
(1)(A) Section 409(e) (relating to voting rights) is amended by adding at the end thereof the following new paragraph: "(5) 1 VOTE PER PARTICIPANT.—A plan meets the requirements of paragraph (2) or (3) with respect to an issue if— "(A) the plan permits each participant 1 vote with respect ^, to such issue, and "(B) the trustee votes the shares held by the plan in the
proportion determined after application of subparagraph
(A)." (B) Paragraph (3) of section 409(e) (relating to requirement for other employers) is amended by striking out all that follows i "with respect to" and inserting in lieu thereof the following: "any corporate matter which involves the voting of such shares I with respect to the approval or disapproval of any corporate I merger or consolidation, recapitalization, reclassification, liquidation, dissolution, sale of substantially all assets of a trade or I business, or such similar transaction as the Secretary may prescribe in regulations." i (C) Paragraphs (2) and (3) of section 409(e) are amended by striking out "employer securities" and inserting in lieu thereof "securities of the employer". (D) Paragraphs (2) and (3) of section 409(e) are amended by f inserting "or beneficiary" after "participant" each place it appears. (2) Section 402 is amended by adding at the end thereof the following new section: "(g) EFFECT OF DISPOSITION OF STOCK BY PLAN ON N E T UNREAUZED APPRECIATION.—
"(1) IN GENERAL.—For purposes of subsection (a)(1) or (e)(4)(J), in the case of any transaction to which this subsection applies, the determination of net unrealized appreciation shall be made without regard to such transaction.
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