Page:United States Statutes at Large Volume 54 Part 1.djvu/871

From Wikisource
Jump to navigation Jump to search
This page needs to be proofread.


54STAT.] 7TrH CONG. , 3D SESS.-CH. 686-AUG. 22, 1940 837 following information and financial statements or their equivalent, as of a reasonably current date, as the Commission may prescribe by rules and regulations for the protection of investors which reports shall not be misleading in any material respect in the light of the reports required to be filed pursuant to subsections (a) and (b): oantent (1) a balance sheet accompanied by a statement of the aggre- gate value of investments on the date of such balance sheet; (2) a list showing the amounts and values of securities owned on the date of such balance sheet; (3) a statement of income, for the period covered by the report, which shall be itemized at least with respect to each category of income and expense representing more than 5 per centum of total income or expense; (4) a statement of surplus, which shall be itemized at least with respect to each charge or credit to the surplus account which represents more than 5 per centum of the total charges or credits during the period covered by the report; (5) a statement of the aggregate remuneration paid by the company during the period covered by the report (A) to all directors and to all members of any advisory board for regular compensation; (B) to each director and to each member of an advisory board for special compensation; (C) to all officers; and (D) to each person of whom any officer or director of the company is an affiliated person; and (6) a statement of the aggregate dollar amounts of purchases and sales of investment securities, other than Government securi- ties, made during the period covered by the report: Provided, That if in the judgment of the Commission any item im. required under this subsection is inapplicable or inappropriate to any specified type or types of investment company, the Commission may by rules and regulations permit in lieu thereof the inclusion of such item of a comparable character as it may deem applicable or appropriate to such type or types of investment company. (e) Financial statements contained in annual reports required Financial state. pursuant to subsections (a) and (d), if required by the rules and Certificate of inde- regulations of the Commission, shall be accompanied by a certificate oundst. Publcr of independent public accountants. The certificate of such inde- pendent public accountants shall be based upon an audit not less in scope or procedures followed than that which independent public accountants would ordinarily make for the purpose of presenting comprehensive and dependable financial statements, and shall con- tain such information as the Commission may prescribe, by rules and regulations in the public interest or for the protection of investors, as to the nature and scope of the audit and the findings and opinion of the accountants. Each such report shall state that such independent public accountants have verified securities owned, either by actual examination, or by receipt of a certificate from the custodian, as the Commission may prescribe by rules and regulations. (f) Every person who is directly or indirectly the beneficial oTranscflotion owner of more than 10 per centum of any class of outstanding securi- ties (other than short-term paper) of which a registered closed-end company is the issuer or who is an officer, director, member of an advisory board, investment adviser, or affiliated person of an invest- ment adviser of such a company shall in respect of his transactions in any securities of such company (other than short-term paper) be subject to the same duties and liabilities as those imposed by section 16 of the Securities Exchange Act of 1934 upon certain beneficial 48 ta. s owners, directors, and officers in respect of their transactions in 15.. i. certain equity securities.