Extension: Rule 3a-8 Under the Investment Company Act of 1940
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
This rule provides a safe harbor for R&D companies from being classified as investment companies under U.S. law. It requires these companies' boards to document that they are primarily engaged in non-investment activities and to maintain proper records. No reporting or filings are needed for the SEC, and compliance is voluntary.
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Key Changes
- Provides a safe harbor for R&D companies from being classified as investment companies
- Requires board resolutions and maintenance of records
- Voluntary compliance with no required filings
Obligations
What this law requires
The board of directors of an R&D company seeking to rely on the safe harbor must adopt a board resolution indicating that the company is primarily engaged in a non-investment business.
The board of directors of an R&D company seeking to rely on the safe harbor of Rule 3a-8 must adopt a resolution affirming that the company primarily engages in a non-investment business.
The board of directors must record the adopted resolution in the company's minute books or comparable documents.
The adopted resolution by the board of directors must be recorded contemporaneously in the company's minute books or comparable documents.
The board of directors must adopt a written policy regarding the company's capital preservation investments as a part of complying with Rule 3a-8.