Securities & Exchange Commission v. Central-Illinois Securities Corp.

This case involves an amended plan filed under § 11 (e) of the Public Utility Holding Company Act of 1935 1 by Engineers Public Service Company. The plan provided, inter alia, for satisfying the claims of Engineers’ preferred stockholders in cash as a preliminary to distributing the remaining assets to common stockholders and dissolving the company. Broadly, the question is whether the Securities and Exchange Commission, in reviewing the plan, correctly applied the “fair and equitable” standard of § 11 (e) in determining the amounts to be paid the preferred stockholders in satisfaction of…