27 U.S.C. § 208 | Interlocking directorates

(a)

Offenses

August 29, 1935Except as provided in subsection (b), it shall be unlawful for any individual to take office, after , as an officer or director of any company, if his doing so would make him an officer or director of more than one company engaged in business as a distiller, rectifier, or blender of distilled spirits, or of any such company and of a company which is an affiliate of any company engaged in business as a distiller, rectifier, or blender of distilled spirits, or of more than one company which is an affiliate of any company engaged in business as a distiller, rectifier, or blender of distilled spirits, unless, prior to taking such office, application made by such individual to the Secretary of the Treasury has been granted and after due showing has been made to him that service by such individual as officer or director of all the foregoing companies of which he is an officer or director together with service in the company with respect to which application is made will not substantially restrain or prevent competition in interstate or foreign commerce in distilled spirits. The Secretary of the Treasury shall, by order, grant or deny such application on the basis of the proof submitted to him and his finding thereon. The District Courts of the United States, and the United States court for any Territory shall have jurisdiction of suits to enjoin, annul, or suspend in whole or in part any final action by the Secretary upon any application under this subsection.

(b)

Conditions of lawfully taking office

An individual may, without regard to the provisions of subsection (a), take office as an officer or director of a company described in said subsection while holding the position of officer or director of any other such company if such companies are affiliates at the time of his taking office and if—

(1)

August 29, 1935 Such companies are affiliates on ; or

(2)

Each of such companies has been organized under the law of a State to comply with a requirement thereof under which, as a condition of doing business in such State, such company must be organized under the law of such State; or

(3)

August 29, 1935 One or more such companies has been organized under the law of a State to comply with a requirement thereof under which, as a condition of doing business in such State, such company must be organized under the laws of such State, and the other one or more of such companies not so organized, is in existence on ; or

(4)

August 29, 1935 One or more of such companies has been organized under the law of a State to comply with a requirement thereof under which, as a condition of doing business in such State, such company must be organized under the law of such State, and not more than one of such companies is a company which has not been so organized and which has been organized after .

(c)

“Company” defined

As used in this section, the term “company” means a corporation, joint stock company, business trust, or association, but does not include any agency of a State or political subdivision thereof or any officer or employee of any such agency.

(d)

Penalty

Any individual taking office in violation of this section shall be punished by a fine of not exceeding $1,000.

Aug. 29, 1935, ch. 814 49 Stat. 986 June 25, 1936, ch. 804 49 Stat. 1921June 30, 194054 Stat. 1232 June 25, 1948, ch. 646, § 32(b)62 Stat. 991 May 24, 1949, ch. 139, § 127 63 Stat. 107 Pub. L. 100–690, title VIII, § 8001(a)(1)Nov. 18, 1988102 Stat. 4517(, title I, § 108, formerly § 8, ; , ; 1940 Reorg. Plan No. III, § 2, eff. , 5 F.R. 2108, ; , ; , ; renumbered title I, § 108, and amended , (2), (b)(2), , , 4521.)

Editorial Notes

Codification

June 25, 1936June 25, 1948May 24, 1949section 132(a) of Title 28 section 88 of Title 28As originally enacted subsec. (a) of this section contained a reference to the Supreme Court of the District of Columbia. Act , substituted “the district court of the United States for the District of Columbia” for “the Supreme Court of the District of Columbia”, and act , as amended by act , substituted “United States District Court for the District of Columbia” for “district court of the United States for the District of Columbia”. However, the words “United States District Court for the District of Columbia” have been deleted entirely as superfluous in view of , Judiciary and Judicial Procedure, which states that “There shall be in each judicial district a district court which shall be a court of record known as the United States District Court for the district”, and which states that “the District of Columbia constitutes one judicial district”.

Amendments

Pub. L. 100–690, § 8001(b)(2)August 29, 19351988—Subsecs. (a), (b)(1), (3), (4). , substituted “the date of the enactment of this title” for “the date of the enactment of this Act”, which had been translated editorially as “”, thereby requiring no change in text.

Executive Documents

Transfer of Functions

section 201 of this title“Secretary of the Treasury” and “Secretary” were substituted for “Administrator”, meaning the Administrator of the Federal Alcohol Administration, pursuant to Reorg. Plan No. III of 1940, see note set out under .