[Code of Federal Regulations]
[Title 16, Volume 1]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 16CFR802.41]

[Page 610]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 802_EXEMPTION RULES--Table of Contents
 
Sec. 802.41  Joint venture or other corporations at time of formation.

    Whenever any person(s) contributing to the formation of a joint 
venture or other corporation are subject to the requirements of the act 
by reason of Sec. 801.40, the joint venture or other corporation need 
not file the notification required by the act and Sec. 803.1.

    Examples: 1. Corporations A and B, each having sales of $200 
million, each propose to contribute $80 million in cash in exchange for 
50 percent of the voting securities of a new corporation, N. Under this 
section, the new corporation need not file notification, although both 
``A'' and ``B'' must do so and observe the waiting period prior to 
receiving any voting securities of N.
    2. In addition to the facts in example 1 above, A and B have agreed 
that upon creation N will purchase 100 percent of the voting securities 
of corporation C for $55 million. Because N's purchase of C is not a 
transaction in connection with N's formation, and because in any event C 
is not a contributor to the formation of N, ``A,'' ``B'' and ``C'' must 
file with respect to the proposed acquisition of C and must observe the 
waiting period.

[43 FR 33544, July 31, 1978, as amended at 52 FR 7082, Mar. 6, 1987; 66 
FR 8694, Feb. 1, 2001]