                                 CODE OF VIRGINIA

SUMMARY ORDER PROHIBITING PAYMENT OF DIVIDENDS TO AFFILIATES (§ 56-83)

The Commission may, of its own motion, whenever facts of record in any
department of the Commission 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 hearing and consideration, either formal or
informal, issue a summary order prohibiting any public service company from
declaring or paying any dividend on any common or equity stock in any case in
which such dividend or any part thereof would be payable to an affiliated
interest as defined in § 56-76, and such summary order may, in case of
emergency, be issued under like circumstances as preliminary injunctions are
issued by the courts of equity of this Commonwealth, and in either case such
summary order so issued may thereafter be made permanent, or be modified, or be
vacated, after such investigation and hearing as may be proper to satisfy the
requirements of due process of law. The jurisdiction of the Commission under
this section shall be based upon considerations of public interest, and the
summary order herein provided for shall be issued only upon a finding that the
declaration or payment of any dividends is, as a matter of fact, inconsistent
with the public interest on account of the probability of disabling the public
service company from continuing to perform adequately its public duties, or that
there is a purpose on the part of such affiliated interest to gain unjust
advantage or profit to the probable detriment of the public service company,
bondholders, other classes of stockholders, or any others having rights in the
premises.

HISTORY: 1938, p. 21; Michie Code 1942, § 3774i1.