United States Supreme Court Cases & Opinions

U.S. Supreme Court

American Power & Light Co. v. SEC, 325 U.S. 385 (1945)

American Power & Light Co. v. Securities & Exchange Commission

No. 470

Argued April 26, 1945

Decided June 4, 1945*

325 U.S. 385

Syllabus

1. Under § 24(a) of the Public Utility Holding Company Act, which grants a right of review to "any person or party aggrieved" by an order issued by the Securities & Exchange Commission under the Act, a stockholder having a substantial financial or economic interest distinct from that of the corporation, which is directly and adversely affected by an order of the Commission, is a "person aggrieved." P. 325 U. S. 388.

2. A sole stockholder of a company ordered by the Securities & Exchange Commission under the Public Utility Holding Company Act to make certain accounting entries which would affect adversely the stockholder's right to dividends held entitled under § 24(a) to a review of the order as a "person aggrieved." Pittsburgh & West Virginia R. Co. v. United States, 281 U. S. 479, distinguished. P. 325 U. S. 389.

3. Where review of an order issued by the Securities & Exchange Commission under the Public Utility Holding Company Act is applied for in more than one circuit court of appeals, that one in which the Commission under § 24(a) files a transcript of its proceedings thereupon has exclusive jurisdiction. P. 325 U. S. 391.

4. A stockholder owning 9,000 out of a total of some 5,250,000 shares of stock of a corporation, charging illegality and fraud in a refinancing transaction between the corporation and a subsidiary which would reduce the value of his stock by reducing the interest income of his corporation, held entitled, under § 24(a), as a "person aggrieved," to a review of an order of the Commission approving the transaction. Pp. 325 U. S. 387, 325 U. S. 392.

5. It is not essential to the stockholder's right to a review in such case that the proceeding have the character of a derivative suit. P. 325 U. S. 392.

143 F.2d 250 reversed.

143 F.2d 945 affirmed.

Page 325 U. S. 386

Certiorari, 323 U.S. 701, 324 U.S. 835, to review, in No. 470, the dismissal of a petition for review of an order of the Commission, and, in No. 815, denials of motions to dismiss (and to dismiss or affirm) a petition for review of an order of the Commission.