56-83 - Summary order prohibiting payment of dividends to affiliates. - Virginia Statutes

§ 56-83. Summary order prohibiting payment of dividends to affiliates.

The Commission may, of its own motion, whenever facts of record in anydepartment of the Commission or within its knowledge appear to justify it inso doing, or upon complaint by the Commonwealth, and after reasonable notice,and opportunity to be heard, and upon hearing and consideration, eitherformal or informal, issue a summary order prohibiting any public servicecompany from declaring or paying any dividend on any common or equity stockin any case in which such dividend or any part thereof would be payable to anaffiliated interest as defined in § 56-76, and such summary order may, incase of emergency, be issued under like circumstances as preliminaryinjunctions are issued by the courts of equity of this Commonwealth, and ineither case such summary order so issued may thereafter be made permanent, orbe modified, or be vacated, after such investigation and hearing as may beproper to satisfy the requirements of due process of law. The jurisdiction ofthe Commission under this section shall be based upon considerations ofpublic interest, and the summary order herein provided for shall be issuedonly upon a finding that the declaration or payment of any dividends is, as amatter of fact, inconsistent with the public interest on account of theprobability of disabling the public service company from continuing toperform adequately its public duties, or that there is a purpose on the partof such affiliated interest to gain unjust advantage or profit to theprobable detriment of the public service company, bondholders, other classesof stockholders, or any others having rights in the premises.

(1938, p. 21; Michie Code 1942, § 3774i1.)