Otis & Co. v. Securities & Exchange Commission

An important although narrow legal point in the interpretation of the Public Utility Holding Company Act of 19351 is involved in this case. This is whether a plan under § 11 (e) of that act may be “fair and equitable” to preferred stockholders within the meaning of those words as used in that section, which allows a participation by junior common stockholders in the distribution of the assets of a registered holding company, which is liquidated in compliance with § 11 (b) (2), before the senior preferred stockholders receive securities whose present value equals the preferred’s full…