Revocation of registration of securities.
Section 16
SEC. 16. Revocation of registration of securities. —(a) The Commission may, after due notice and hearing, revoke the registration of any security and the permit to sell such security by issuing an order to this effect, setting: forth its findings in respect thereto, if upon examination it shall appear that the issuer: Is insolvent; Has violated any of the provisions of this Act, or the rules promulgated pursuant thereto, or any order of the Commission of which the issuer has notice; Has been or is engaged or is about to engage in fraudulent transactions; Is in any other way dishonest or has made any fraudulent representation in any prospectus or in any circular or other literature that has been distributed concerning the issuer of its securities; or Does not conduct its business in accordance with law. The Commission may compel the production of all the books and papers of such issuer, and may administer oaths to, and examine the officers of such issuer or any other person connected therewith as to its business and affairs, and may also require a balance sheet exhibiting the assets and liabilities of any such issuer or his income statement or both to be certified to by an independent certified public accountant. Whenever the Commission may deem it necessary, it may also require the submission of such balance sheet or income or profit statement, or both, with such particulars as the Commission shall point out or brought down to the latest practicable date. If any issuer shall refuse to permit an examination to be made by the Commission, its refusal shall be proper ground for the revocation of the registration of and permission to sell its securities. If the Commission deems it necessary, it may issue an order suspending the right to sell securities pending any investigation. The order shall state the grounds for taking such action, but such order of suspension, although binding upon the persons notified thereof, shall be deemed confidential, and shall not be published. Upon the issuance of the suspension order, no further sale of such security shall be made until the same is lifted or set aside by the Commission. Any such sale shall be void. Notice of issuance of such order shall be given by mail, or personally, or by telephone, confirmed in writing, or by telegram, to the issuer and every dealer and broker who shall have notified the Commission of an intention to sell such security. (b) A registration statement may be revoked by the Commission upon petition made for its withdrawal by the issuer only with the consent of the Commission and in accordance with such rules and regulations which the Commission may prescribe: Provided, That no party stands to suffer damage thereby. (12a)