[Code of Federal Regulations]
[Title 49, Volume 7]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR1013.1]

[Page 42]
 
                        TITLE 49--TRANSPORTATION
 
  CHAPTER X--SURFACE TRANSPORTATION BOARD, DEPARTMENT OF TRANSPORTATION
 
PART 1013_GUIDELINES FOR THE PROPER USE OF VOTING TRUSTS--Table of Contents
 
Sec. 1013.1  The independence of the trustee of a voting trust.




Sec.
1013.1 The independence of the trustee of a voting trust.
1013.2 The irrevocability of the trust.
1013.3 Review and reporting requirements for regulated carriers.

    Authority: 49 U.S.C. 721, 13301(f).

    Source: 44 FR 59909, Oct. 17, 1979, unless otherwise noted.


    (a) In order to avoid an unlawful control violation, the independent 
voting trust should be established before a controlling block of voting 
securities is purchased.
    (b) In voting the trusteed stock, the trustee should maintain 
complete independence from the creator of the trust (the settlor).
    (c) Neither the trustee, the settlor, nor their respective 
affiliates should have any officers or board members in common or direct 
business arrangements, other than the voting trust, that could be 
construed as creating an indicium of control by the settlor over the 
trustee.
    (d) The trustee should not use the voting power of the trust in any 
way which would create any dependence or intercorporate relationship 
between the settlor and the carrier whose corporate securities 
constitute the corpus of the trust.
    (e) The trustee should be entitled to receive cash dividends 
declared and paid upon the trusteed voting stock and turn them over to 
the settlor. Dividends other than cash should be received and held by 
the trustee upon the same terms and conditions as the stock which 
constitutes the corpus of the trust.
    (f) If the trustee becomes disqualified because of a violation of 
the trust agreement or if the trustee resigns, the settlor should 
appoint a successor trustee within 15 days.