South Carolina General Assembly
105th Session, 1983-1984

Bill 2255


                    Current Status

Bill Number:               2255
Ratification Number:       117
Act Number                 67
Introducing Body:          House
Subject:                   Limitations on the amount of stock
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A67, R117, H2255)

AN ACT TO AMEND SECTION 33-45-90, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LIMITATIONS ON THE AMOUNT OF STOCK THAT MAY BE OWNED BY A STOCKHOLDER IN A COOPERATIVE ASSOCIATION, SO AS TO PROVIDE THAT A TELEPHONE COOPERATIVE ASSOCIATION MAY OWN A MAJORITY OR ALL OF THE CAPITAL STOCK OF ANOTHER CORPORATION OR COOPERATIVE ASSOCIATION AND MAY CAST VOTES PERTAINING TO THE MANAGEMENT OF THE OTHER CORPORATION OR ASSOCIATION IN PROPORTION TO THE NUMBER OF SHARES OWNED THEREIN; TO AMEND SECTION 58-3-170, RELATING TO THE AUTHORITY OF THE PUBLIC SERVICE COMMISSION TO FIX AND SUPERVISE AGREEMENTS BETWEEN AND AMONG COMMON CARRIERS AND TELEPHONE AND TELEGRAPH COMPANIES, SO AS TO PROVIDE THAT WITH CERTAIN EXCEPTIONS THE PROVISIONS OF THE SECTION DO NOT APPLY TO TRANSACTIONS BETWEEN A TELEPHONE COOPERATIVE ASSOCIATION AND ITS SUBSIDIARY CORPORATION OR COOPERATIVE ASSOCIATION; TO AMEND SECTION 58-9-310, RELATING TO THE REQUIREMENT THAT A TELEPHONE UTILITY MAY NOT SELL, MERGE, OR CONSOLIDATE ITS PROPERTY, POWERS, FRANCHISES, OR PRIVILEGES WITHOUT THE APPROVAL OF THE PUBLIC SERVICE COMMISSION, SO AS TO PROVIDE THAT A TELEPHONE COOPERATIVE ASSOCIATION MAY ACQUIRE OR INCORPORATE A SUBSIDIARY CORPORATION OR COOPERATIVE ASSOCIATION WITHOUT THE APPROVAL OF THE COMMISSION; AND TO AMEND SECTION 58-9-320, RELATING TO TRANSACTIONS BETWEEN A TELEPHONE UTILITY AND ITS AFFILIATES AND THE AUTHORITY OF THE COMMISSION TO REGULATE SUCH TRANSACTIONS, SO AS TO PROVIDE THAT THE PROVISIONS OF THIS SECTION DO NOT APPLY TO THE ACQUISITION OR INCORPORATION OF OR MERGER BETWEEN A TELEPHONE COOPERATIVE ASSOCIATION AND ANOTHER CORPORATION OR COOPERATIVE ASSOCIATION.

Be it enacted by the General Assembly of the State of South Carolina:

Telephone Cooperativbe Association may own majority or all of

stock

SECTION 1. Section 33-45-90 of the 1976 Code is amended by adding at the end:

"Notwithstanding the above provisions of this section, a telephone cooperative association may own a majority or all of the capital stock of another corporation or cooperative association and may cast votes on subjects pertaining to the management of the other corporation or cooperative association in an amount proportionally equal to the number of shares owned therein."

Nonapplicability of section

SECTION 2. Section 58-3-170 of the 1976 Code is amended by adding at the end:

"Except insofar as rates, transactions affecting rates, or transactions affecting service areas are concerned, the provisions of this section do not apply to transactions between a telephone cooperative association and its subsidiary corporation or cooperative association."

Powers of telephone utilities

SECTION 3. Section 58-9-310 of the 1976 Code is amended to read:

"Section 58-9-310. No telephone utility, without the approval of the Commission after due hearing and compliance with all other existing requirements of the laws of the State in relation thereto, may sell, transfer, lease, consolidate, or merge its property, powers, franchises, or privileges or any of them; provided, however, that a telephone cooperative association may acquire or incorporate a subsidiary corporation or a subsidiary cooperative association without the approval of the Commission."

Nonapplicability of section

SECTION 4. Section 58-9-320 of the 1976 Code is amended by adding at the end:

"The provisions of this section do not apply to the acquisition or incorporation of or merger between a telephone cooperative association and another corporation or cooperative association."

Time effective

SECTION 5. This act shall take effect upon approval by the Governor.