Administrative Law – Powers of Agencies – Right of Registrant to Withdraw Registration Statement Filed with the Securities and Exchange Commission
Petitioner filed a registration statement with the Securities and Exchange Commission for an issue of corporate stock. Shares of the same class as those being registered were widely held by members of the public. Petitioner repeatedly amended the statement, so that it had not yet become effective nearly three months after the initial filing. At this time, petitioner sought to withdraw its registration statement. The commission denied the application for withdrawal, and after a hearing, issued a stop order, preventing the statement from becoming effective and indicating its unreliability. On petition for review of the order, held, affirmed. Where members of the public hold shares of the same class of security covered by a registration statement filed with the SEC, the commission may deny permission to withdraw the statement before the effective date and issue a stop order prohibiting further sales activities by use of the mails or in interstate commerce. Columbia General Investment Corporation v. Securities and Exchange Commission, (5th Cir. 1959) 265 F. (2d) 559.