CITE
15 USC Sec. 80a-13 01/05/2009
EXPCITE
TITLE 15 - COMMERCE AND TRADE
CHAPTER 2D - INVESTMENT COMPANIES AND ADVISERS
SUBCHAPTER I - INVESTMENT COMPANIES
HEAD
Sec. 80a-13. Changes in investment policy
STATUTE
(a) No registered investment company shall, unless authorized by
the vote of a majority of its outstanding voting securities -
(1) change its subclassification as defined in section 80a-
5(a)(1) and (2) of this title or its subclassification from a
diversified to a nondiversified company;
(2) borrow money, issue senior securities, underwrite
securities issued by other persons, purchase or sell real estate
or commodities or make loans to other persons, except in each
case in accordance with the recitals of policy contained in its
registration statement in respect thereto;
(3) deviate from its policy in respect of concentration of
investments in any particular industry or group of industries as
recited in its registration statement, deviate from any
investment policy which is changeable only if authorized by
shareholder vote, or deviate from any policy recited in its
registration statement pursuant to section 80a-8(b)(3) of this
title; or
(4) change the nature of its business so as to cease to be an
investment company.
(b) In the case of a common-law trust of the character described
in section 80a-16(c) of this title, either written approval by
holders of a majority of the outstanding shares of beneficial
interest or the vote of a majority of such outstanding shares cast
in person or by proxy at a meeting called for the purpose shall for
the purposes of subsection (a) of this section be deemed the
equivalent of the vote of a majority of the outstanding voting
securities, and the provisions of paragraph (42) of section 80a-
2(a) of this title as to a majority shall be applicable to the
vote cast at such a meeting.
(c) Limitation on Actions. -
(1) In general. - Notwithstanding any other provision of
Federal or State law, no person may bring any civil, criminal, or
administrative action against any registered investment company,
or any employee, officer, director, or investment adviser
thereof, based solely upon the investment company divesting from,
or avoiding investing in, securities issued by persons that the
investment company determines, using credible information that is
available to the public, conduct or have direct investments in
business operations in Sudan described in section 3(d) of the
Sudan Accountability and Divestment Act of 2007.
(2) Applicability. -
(A) Actions for breaches of fiduciary duties. - Paragraph (1)
does not prevent a person from bringing an action based on a
breach of a fiduciary duty owed to that person with respect to
a divestment or non-investment decision, other than as
described in paragraph (1).
(B) Disclosures. - Paragraph (1) shall not apply to a
registered investment company, or any employee, officer,
director, or investment adviser thereof, unless the investment
company makes disclosures in accordance with regulations
prescribed by the Commission.
(3) Person defined. - For purposes of this subsection the term
"person" includes the Federal Government and any State or
political subdivision of a State.
SOURCE
(Aug. 22, 1940, ch. 686, title I, Sec. 13, 54 Stat. 811; Pub. L. 91-
547, Secs. 2(b), 3(d), Dec. 14, 1970, 84 Stat. 1414, 1415; Pub. L.
94-29, Sec. 28(4), June 4, 1975, 89 Stat. 165; Pub. L. 110-174,
Sec. 4(a), Dec. 31, 2007, 121 Stat. 2519.)