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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>75136</law_id><section_number>56-83</section_number><catch_line>Summary order prohibiting payment of dividends to affiliates</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><structure><unit label="title" level="1" order_by="1" identifier="56">Public Service Companies</unit><unit label="chapter" level="2" order_by="1" identifier="4">Regulation of Relations With Affiliated Interests</unit></structure><text>
						<section><p>The <span class="dictionary">Commission</span> may, of its own <span class="dictionary">motion</span>, whenever <span class="dictionary">facts</span> of record in any department of the <span class="dictionary">Commission</span> or within its knowledge appear to justify it in so doing, or upon complaint by the Commonwealth, and after reasonable notice, and opportunity to be heard, and upon <span class="dictionary">hearing</span> and consideration, either formal or informal, <span class="dictionary">issue</span> a summary <span class="dictionary">order</span> prohibiting any <span class="dictionary">public service company</span> from declaring or paying any dividend on any common or <span class="dictionary">equity</span> stock in any case in which such dividend or any part thereof would be payable to an <span class="dictionary">affiliated interest</span> as defined in &#xA7;&#xA0;<a class="law" title="Definitions" href="/56-76/">56-76</a>, and such summary <span class="dictionary">order</span> may, in case of emergency, be issued under like circumstances as preliminary <span class="dictionary">injunctions</span> are issued by the <span class="dictionary">courts</span> of <span class="dictionary">equity</span> of this Commonwealth, and in either case such summary <span class="dictionary">order</span> so issued may thereafter be made permanent, or be modified, or be vacated, after such investigation and <span class="dictionary">hearing</span> as may be proper to satisfy the requirements of <span class="dictionary">due process</span> of <span class="dictionary">law</span>. The <span class="dictionary">jurisdiction</span> of the <span class="dictionary">Commission</span> under this section shall be based upon considerations of public interest, and the summary <span class="dictionary">order</span> herein provided for shall be issued only upon a <span class="dictionary">finding</span> that the declaration or payment of any dividends is, as a matter of <span class="dictionary">fact</span>, inconsistent with the public interest on account of the probability of disabling the <span class="dictionary">public service company</span> from continuing to perform adequately its public duties, or that there is a purpose on the part of such <span class="dictionary">affiliated interest</span> to gain unjust advantage or profit to the probable detriment of the <span class="dictionary">public service company</span>, bondholders, other classes of stockholders, or any others having rights in the premises.</p></section></text><history>1938, p. 21; Michie Code 1942, &#xA7; 3774i1.</history><metadata></metadata></law>
