CFR > Title 17 - Commodity and Securities Exchanges > CHAPTER II—SECURITIES AND EXCHANGE COMMISSION > PART 270—RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940 > 270.32a-1—Exemption of certain companies from affiliation provisions of section 32(a).

270.32a-1—Exemption of certain companies from affiliation provisions of section 32(a).

A registered investment company shall be exempt from the provisions of paragraph (1) of section 32(a) of the Act (54 Stat. 838; 15 U.S.C. 80a-31 ), insofar as said paragraph requires that independent public accounts for such company be selected by a majority of certain members of the board of directors, if:
(a) Such company meets the conditions of paragraphs (1) to (8), inclusive, of section 10(d) of the Act (54 Stat. 807; 15 U.S.C. 80a-10 ); and
(b) Such accountants are selected by a majority of all the members of the board of directors.

Code of Federal Regulations

[Rule N-32A-1, 6 FR 6631, Dec. 23, 1941]