Stock dividends and splits; reorganizations.
16 C.F.R. § 802.10
in effectEffective: 2024-07-01(a) The acquisition of voting securities pursuant to a stock split or pro rata stock dividend is exempt from the requirements of the Act under section 7A(c)(10).
(b) An acquisition of non-corporate interests or voting securities as a result of the conversion of a corporation or unincorporated entity into a new entity is exempt from the requirements of the Act if:
(1) No new assets will be contributed to the new entity as a result of the conversion; and
(2) Either:
(i) As a result of the transaction the acquiring person does not increase its per centum holdings in the new entity relative to its per centum holdings in the original entity; or
(ii) The acquiring person controlled the original entity.
Source: eCFRURL: https://www.ecfr.gov/api/versioner/v1/full/2024-07-01/title-16.xmlFetched: 7/26/2026