To limit the influence and control of South Africans in United States business enterprises.

Prohibits any South African from acquiring, purchasing, owning, or holding five percent or more of the voting securities of any U.S. business enterprise.

 
HR 636 IH
101st CONGRESS
1st Session
 H. R. 636
To limit the influence and control of South Africans in United States
business enterprises.
IN THE HOUSE OF REPRESENTATIVES
January 24, 1989
Mr. LELAND (for himself and Mr. DELLUMS) introduced the following bill;
which was referred to the Committee on Energy and Commerce
A BILL
To limit the influence and control of South Africans in United States
business enterprises.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. MEASURES TO LIMIT THE INFLUENCE AND CONTROL OF SOUTH AFRICANS IN
UNITED STATES BUSINESS ENTERPRISES.
  (a) No South African person may directly or indirectly acquire, purchase,
  own, or hold 5 percent or more of the voting securities of any business
  enterprise incorporated, chartered, or organized in the United States.
  (b) For purposes of this Act the following terms have the following meanings:
  (1) The term `South African person' means--
  (A) any person resident in South Africa or subject to the jurisidiction
  of South Africa;
  (B) any individual, branch, partnership, associated group, association,
  trust, estate, corporation, or other organization organized under the laws
  of South Africa, and the Government of South Africa (including a State or
  local government, and any agency, corporation, financial institution, or
  other entity or instrumentality thereof, including a government-sponsored
  agency); or
  (C) any entity of which 5 percent or more of its voting securities is
  directly or indirectly owned or controlled by any person or entity under
  subparagraphs (A) and (B).
  (2) The term `business enterprise' means any organization, association,
  branch, or venture which exists for profitmaking purposes or to otherwise
  secure economic advantage, and any ownership of any real estate.
  (3) The term `associated group' means two or more persons who, by
  the appearance of their actions, by agreement, or by an understanding,
  exercise their voting privileges in a concerted mannner to influence the
  management of a business enterprise. Each of the following are deemed to
  be an associated group:
  (A) Members of the same family,
  (B) A business enterprise and one or more of the officers and directors.
  (C) Members of a syndicate or joint venture.
  (D) A corporation and its domestic subsidiaries.
  (c) For purposes of this Act in determining any percentage of the voting
  securities, the voting securities shall be deemed to consist of the amount
  of the outstanding voting securities, exclusive of any voting securities
  held by or for the account of the issuer or a subsidiary of the issuer.
  (d) A South African person in violation of subsection (a) shall divest
  ownership of such voting securities as are in violation of the limitation
  under such subsection within one year after the date of the enactment of
  this Act.
  (e) The United States or any person aggrieved may bring a civil action
  in an appropriate district court for equitable relief with respect to
  any violation of this Act. If a plaintiff other than the United States
  is a prevailing party in such an action, the court shall award costs and
  reasonable attorney fees to that plaintiff. For purposes of this subsection
  a `person aggrieved' shall include any shareholder, officer, employee,
  or employee representative (including designated collective bargaining
  agent) of a company whose voting securities are acquired, purchased, owned,
  or held (either directly or indirectly) in violation of this Act.