46 U.S.C. § 50501 Entities Deemed Citizens of the United States
Library | United States Statutes |
Currency | Current through P.L. 118-19 (published on www.congress.gov on 10/06/2023) |
Citation | 46 U.S.C. § 50501 |
(a) IN GENERAL.-In this subtitle, a corporation, partnership, or association is deemed to be a citizen of the United States only if the controlling interest is owned by citizens of the United States. However, if the corporation, partnership, or association is operating a vessel in the coastwise trade, at least 75 percent of the interest must be owned by citizens of the United States.
(b) ADDITIONAL REQUIREMENTS FOR CORPORATIONS.-In this subtitle, a corporation is deemed to be a citizen of the United States only if, in addition to satisfying the requirements in subsection (a)-
(1) it is incorporated under the laws of the United States or a State;
(2) its chief executive officer, by whatever title, and the chairman of its board of directors are citizens of the United States; and
(3) no more of its directors are noncitizens than a minority of the number necessary to constitute a quorum.
(c) DETERMINATION OF CONTROLLING CORPORATE INTEREST.-The controlling interest in a corporation is owned by citizens of the United States under subsection (a) only if-
(1) title to the majority of the stock in the corporation is vested in citizens of the United States free from any trust or fiduciary obligation in favor of a person not a citizen of the United States;
(2) the majority of the voting power in the corporation is vested in citizens of the United States;
(3) there is no contract or understanding by which the majority of the voting power in the corporation may be exercised, directly or indirectly, in behalf of a person not a citizen of the United States; and
(4) there is no other means by which control of the corporation is given to or permitted to be exercised by a person not a citizen of the United States.
(d) DETERMINATION OF 75 PERCENT CORPORATE INTEREST.-At least 75 percent of the interest in a corporation is owned by citizens of the United States under subsection (a) only if-
(1) title to at least 75 percent of the stock in the corporation is vested in citizens of the United States free from any trust or fiduciary obligation in favor of a person not a citizen of the United States;
(2) at least 75 percent of the voting power in the corporation is vested in citizens of the United States;
(3) there is no contract or understanding by which more than 25 percent of the voting power in the corporation may be exercised, directly or indirectly, in behalf of a person not a citizen of the United States; and
(4) there is no other means by which control of more than 25 percent of any interest in the corporation is given to or permitted to be exercised by a person not a citizen of the United States.
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