§ 208. — Interlocking directorates.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 27USC208]
TITLE 27--INTOXICATING LIQUORS
CHAPTER 8--FEDERAL ALCOHOL ADMINISTRATION ACT
SUBCHAPTER I--FEDERAL ALCOHOL ADMINISTRATION
Sec. 208. Interlocking directorates
(a) Offenses
Except as provided in subsection (b) of this section, it shall be
unlawful for any individual to take office, after August 29, 1935, 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) of this section, 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) Such companies are affiliates on August 29, 1935; 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) 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 August 29, 1935;
or
(4) 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 August 29, 1935.
(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, title I, Sec. 108, formerly Sec. 8, 49 Stat.
986; June 25, 1936, ch. 804, 49 Stat. 1921; 1940 Reorg. Plan No. III,
Sec. 2, eff. June 30, 1940, 5 F.R. 2108, 54 Stat. 1232; June 25, 1948,
ch. 646, Sec. 32(b), 62 Stat. 991; May 24, 1949, ch. 139, Sec. 127, 63
Stat. 107; renumbered title I, Sec. 108, and amended Pub. L. 100-690,
title VIII, Sec. 8001(a)(1), (2), (b)(2), Nov. 18, 1988, 102 Stat. 4517,
4521.)
Codification
As originally enacted subsec. (a) of this section contained a
reference to the Supreme Court of the District of Columbia. Act June 25,
1936, substituted ``the district court of the United States for the
District of Columbia'' for ``the Supreme Court of the District of
Columbia'', and act June 25, 1948, as amended by act May 24, 1949,
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 section 132(a) of Title 28, 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 section 88 of Title 28 which states that
``the District of Columbia constitutes one judicial district''.
Amendments
1988--Subsecs. (a), (b)(1), (3), (4). Pub. L. 100-690,
Sec. 8001(b)(2), substituted ``the date of the enactment of this title''
for ``the date of the enactment of this Act'', which had been translated
editorially as ``August 29, 1935'', thereby requiring no change in text.
Transfer of Functions
``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 section 201 of this title.
