94 STAT. 2276
PUBLIC LAW 96-477—OCT. 21, 1980
ners, offers to provide, and, if accepted, does so provide, significant guidance and counsel concerning the management, operations, or business objectives and policies of a portfolio company; "(B) the exercise by a business development company of a controlling influence over the management or policies of a portfolio company by the business development company acting individually or as part of a group acting together which controls such portfolio company; or "(C) with respect to a small business investment company licensed by the Small Business Administration to operate under 15 USC 661 note. the Small Business Investment Act of 1958, the making of loans to a portfolio company. For purposes of subparagraph (A), the requirement that a business development company make available significant managerial assistance shall be deemed to be satisfied with respect to any particular portfolio company where the business development company purchases securities of such portfolio company in conjunction with one or more other persons acting together, and at least one of the persons in the group makes available significant managerial assistance to such portfolio company, except that such requirement will not be deemed to be satisfied if the business development company, in all cases, makes available significant managerial assistance solely in the manner described in this sentence. "(48) 'Business development company' means any closed-end company which— "(A) is organized under the laws of, and has its principal place of business in, any State or States; "(B) is operated for the purpose of making investments in Post, p. 2278. securities described in sections 55(a)(1) through (3), and makes available significant managerial assistance with respect to the issuers of such securities, provided that a business development company must make available significant managerial assistance only with respect to the companies which are treated by such business development company as satisfying the 70 per centum of the value of its total assets condition of section 55; and Post, p. 2278. "(C) has elected pursuant to section 54(a) to be subject to the Post, pp. provisions of sections 55 through 65,". 2278-2289. ATTRIBUTION OF BENEFICIAL OWNERSHIP
SEC. 102. Section 3(c)(1) of the Investment Company Act of 1940 (15 U.S.C. 80a-3(c)(l)) is amended to read as follows: "(1) Any issuer whose outstanding securities (other than short-term paper) are beneficially owAed by not more than one hundred persons and which is not making and does not presently propose to make a public offering of its securities. For purposes of this paragraph: "(A) Beneficial ownership by a company shall be deemed to be beneficial ownership by one person, except that, if the company owns 10 per centum or more of the outstanding voting securities of the issuer, the beneficial ownership shall be deemed to be that of the holders of such company's outstanding securities (other than short-term paper) unless, as of the date of the most recent acquisition by such company of securities of that issuer, the value of all securities owned by such company of all issuers which are or would, but for the exception set forth in this subparagraph, be excluded from the definition of investment company solely by this paragraph, does not exceed 10 per centum of the value of the
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