---
kind: "section"
citation: "16 C.F.R. § 802.10"
title: "16"
number: "802.10"
heading: "Stock dividends and splits; reorganizations."
url: "https://uscodex.org/cfr/16/802.10"
---

# §802.10. Stock dividends and splits; reorganizations.

- (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)](/cfr/16/7A.md?p=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.**

## Notes

### Amendments

[70 FR 11513, Mar. 8, 2005]

### Authority

Authority: 15 U.S.C. 18a(d).

### Source

Source: 43 FR 33544, July 31, 1978, unless otherwise noted.

### Amendments

[70 FR 11513, Mar. 8, 2005]