During this period of expansion PG&E was involved in legal proceedings with the Securities and Exchange Commission regarding the company's status as a subsidiary of the North American Company. As outlined by the Public Utility Holding Company Act of 1935, a utility subsidiary was defined as a utility company with more than 10% of their stock held by a public utility holding company. Though 17% of PG&E stock was held by the North American Company at this time, PG&E filed with the SEC to be exempted from subsidiary status on the grounds that 17% ownership did not give the North American Company control and because the North American Company occupied only two board member spots.[1][2] The North American Company backed PG&E's request by stating that they were involved in business operations in a limited capacity.[3] The request remained unresolved until 1945 when the North American Company sold off stocks that brought its ownership to below 10%. The SEC then ruled that PG&E was not a subsidiary of the North American Company.[4] In 1948, the North American Company sold its remaining stock in PG&E.[5]
- ^ Phleger, Herman (1953). "Sixty Years in Law, Public Service and International Affairs". University of California.
- ^ (Coleman 1952, pp. 314–316)
- ^ "Bittker on the Regulation of Interstate and Foreign Commerce". Aspen Publishers. 1999. ISBN 0735503648.
{{cite web}}: Unknown parameter|authors=ignored (help) - ^ "Twelfth Annual Report of the Securities and Exchange Commission" (PDF). Securities and Exchange Commission. 1957. ISBN 0735503648.
- ^ (Coleman 1952, pp. 314–316)