84 STAT. ]
PUBLIC LAW 91-547-DEC. 14, 1970
1419
«rnipli (1), and the fourt may issue any order with respect to such issuer as may be necessary or appropriate for the enforcement of the l)rovisions of this paragraph (1). (2) It shall be unhnvful for any registered investment company and any company or companies controlled b}^ such registered investment company to purchase or otherwise acquire any security (except a security received as a dividend or as a result of a plan of reorganization of any company, other than a plan devised for the purpose of evading the provisions of this paragraph) issued by any insurance company of which such registered investment company and any company or companies controlled by such registered company do not, at the time of such purchase or acquisition, own in the aggregate at least 25 per centum of the total outstanding voting stock, if such registered company and any company or companies controlled by it own in the aggregate, or as a result of such purchase or acquisition will own in the aggregate, more than 10 per centum of the total outstanding voting stock of such insurance company. (8) It shall be unlawful for any registered investment company and any company or companies controlled by such registered investment company to purchase or otherwise acquire any security issued by or any other interest in the business of any person who is a broker, a dealer, is engaged in the business of underwriting, or is either an investment adviser of an investment company or an investment adviser Stat. 847. registered under title II of this Act, unless (A) such person is a cor- 54 USC 80b-l. 15 poration all the outstanding securities of which (other than shortterm paper, securities representing bank loans, and directors* qualifying shares) are, or after such acquisition will be, owned by one or more registered investment companies; and (B) such person is primarily engaged in the business of underwriting and distributing securities issued by other persons, selling securities to customers, or any one or more of such or related activities, and the gross income of such person normally is derived principally from such business or related activities." Investment SE(\ 8. (a) Section lo(a) of the Investment Company Act of 1940 adviser, contract (15 I '. S. ( \ 80a-15(a)) is amended to read as follows: requirements. " (a) It shall be unlawful for any person to serve or act as investment 54 Stat. 812. adviser of a registered investment compan;^, except pursuant to a written contract, which contract, whether with such registered com))any or with an investment adviser of such registered company, has been approved by the vote of a majority of the outstanding voting securities of such registered company, and— " (1) precisely describes all compensation to be paid thereunder; "(2) shall continue in effect for a period more than two years from the date of its execution, only so long as such continuance is specifically approved at least annually by the board of directors or by vote of a majority of the outstanding voting securities of such company; "(3) provides, in substance, that it may be terminated at any time, without the payment of any penalty, by the board of directors of such registered company or by vote of a majority of the outstanding voting securities of such company on not more than sixty days' written notice to the investment adviser; and "(4) provides, in substance, for its automatic termination in the event of its assignment." Principal under(b) Section 15(b) of such Act (15 U.S.C. 80a-15(b)) is amended to writer, contract requirements. read as follows: •'(b) It shall be unlawful for any principal underwriter for a registered open-end company to offer for sale, sell, or deliver after sale any security of which such company is the issuer, except pursuant to a written contract with such company, which contract—
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