American Power & Light Co. v. SEC
Annotate this Case
325 U.S. 385 (1945)
U.S. Supreme Court
American Power & Light Co. v. SEC, 325 U.S. 385 (1945)
American Power & Light Co. v. Securities & Exchange Commission
Argued April 26, 1945
Decided June 4, 1945
325 U.S. 385
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.
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.
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