Page:United States Statutes at Large Volume 54 Part 1.djvu/839

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54 STAT.] 7frH CONG. , 3D SESS.-CH. 686-AUG. 22 , 1940 registrant, by rules and regulations or order, a registration statement which eliminates inappropriate duplication of information contained in the registration statement filed under this section by such other investment company. (e) If it appears to the Commission that a registered investment company has failed to file the registration statement required by this section or a report required pursuant to section 30 (a) or (b), or has filed such a registration statement or report but omitted therefrom material facts required to be stated therein, or has filed such a regis- tration statement or report in violation of section 34 (b), the Com- mission shall notify such company by registered mail of the failure to file such registration statement or report, or of the respects in which such registration statement or report appears to be materially incom- plete or misleading, as the case may be, and shall fix a date (in no event earlier than thirty days after the mailing of such notice) prior to which such company may file such registration statement or report or correct the same. If such registration statement or report is not filed or corrected within the time so fixed by the Commission or any extension thereof, the Commission, after appropriate notice and opportunity for hearing, and upon such conditions and with such exemptions as it deems appropriate for the protection of investors, may by order suspend the registration of such company until such statement or report is filed or corrected, or may by order revoke such registration, if the evidence establishes- (1) that such company has failed to file a registration state- ment required by this section or a report required pursuant to section 30 (a) or (b), or has filed such a registration statement or report but omitted therefrom material facts required to be stated therein, or has filed such a registration statement or report in violation of section 34 (b); and (2) that such suspension or revocation is in the public interest. (f) Whenever the Commission, on its own motion or upon appli- cation, finds that a registered investment company has ceased to be an investment company, it shall so declare by order and upon the taking effect of such order the registration of such company shall cease to be in effect. If necessary for the protection of investors, an order under this subsection may be made upon appropriate condi- tions. The Commission's denial of any application under this subsection shall be by order. INELIGIBILITY OF CERTAIN AFFILIATED PERSONS AND UNDERWRITERS SEC. 9 . (a) It shall be unlawful for any of the following persons to serve or act in the capacity of officer, director, member of an advisory board, investment adviser, or depositor of any registered investment company, or principal underwriter for any registered open-end company, registered unit investment trust, or registered face-amount certificate company: (1) any person who within ten years has been convicted of any felony or misdemeanor involving the purchase or sale of any security or arising out of such person's conduct as an under- writer, broker, dealer, or investment adviser, or as an affiliated person, salesman, or employee of any investment company, bank, or insurance company; (2) any person who, by reason of any misconduct, is perma- nently or temporarily enjoined by order, judgment, or decree of any court of competent jurisdiction from acting as an under- writer, broker, dealer, or investment adviser, or as an affiliated person, salesman, or employee of any investment company, bank, 805 Failure to file state- ment, etc. Notification. Suspension. Revocation. Company ceasing to bean investment com- pany. Persons deemed in- eligible for service with investment com- panies, etc.