(10) the term "Commission" means the Federal Communications Commission. (Pub. L. 87-624, title I, § 103, Aug. 31, 1962, 76 Stat. 419.) REFERENCES IN TEXT The Communications Act of 1934, as amended, referred to in subd. (7), is classified to chapter 5 of this title. SUBCHAPTER II. - FEDERAL COORDINATION, PLANNING, AND REGULATION § 721. Implementation of policy. In order to achieve the objectives and to carry out the purposes of this chapter Executive functions; execution of national program; review; agency coordination; supervision of foreign relationships; foreign participation; use for general governmental purposes; separate systems; compatibility with domestic and foreign facilities. (a) the President shall (1) aid in the planning and development and foster the execution of a national program for the establishment and operation, as expeditiously as possible, of a commercial communications satellite system; (2) provide for continuous review of all phases of the development and operation of such a system, including the activities of a communications satellite corporation authorized under subchapter III of this chapter; (3) coordinate the activities of governmental agencies with responsibilities in the field of telecommunication, so as to insure that there is full and effective compliance at all times with the policies set forth in this chapter; (4) exercise such supervision over relationships of the corporation with foreign governments or entities or with international bodies as may be appropriate to assure that such relationships shall be consistent with the national interest and foreign policy of the United States; (5) insure that timely arrangements are made under which there can be foreign participation in the establishment and use of a communications satellite system; (6) take all necessary steps to insure the availability and appropriate utilization of the communications satellite system for general governmental purposes except where a separate communications satellite system is required to meet unique governmental needs, or is otherwise required in the national interest; and (7) so exercise his authority as to help attain coordinated and efficient use of the electromagnetic spectrum and the technical compatibility of the system with existing communications facilities both in the United States and abroad. Administration functions; technical advice to Commission; cooperation in research and development and technical consultation with corporation; assistance and launching, associated services and other services to corporation on reimbursable basis. (b) the National Aeronautics and Space Administration shall (1) advise the Commission on technical characteristics of the communications satellite system; (2) cooperate with the corporation in research and development to the extent deemed appropriate by the Administration in the public interest: (3) assist the corporation in the conduct of its research and development program by furnishing to the corporation, when requested, on a reimbursable basis, such satellite launching and associated services as the Administration deems necessary for the most expeditious and economical development of the communications satellite system; (4) consult with the corporation with respect to the technical characteristics of the communications satellite system; (5) furnish to the corporation, on request and on a reimbursable basis, satellite launching and associated services required for the establishment, operation, and maintenance of the communications satellite system approved by the Commission; and (6) to the extent feasible, furnish other services, on a reimbursable basis, to the corporation in connection with the establishment and operation of the system. Commission functions; competitive bidding; consultation with Small Business Administration; discrimination; just and reasonable charges, classifications, practices, regulations and other terms and conditions; allocation of facilities; establishment of communication to particular foreign point; technical compatibility of system and stations; accounting; rates; technical approval; construction and operation authorizations; financing of corporation; additions; rules and regulations. (c) the Federal Communications Commission, in its administration of the provisions of the Communications Act of 1934, as amended, and as supplemented by this chapter, shall (1) insure effective competition, including the use of competitive bidding where appropriate, in the procurement by the corporation and communications common carriers of apparatus, equipment, and services required for the establishment and operation of the communications satellite system and satellite terminal stations; and the Commission shall consult with the Small Business Administration and solicit its recommendations on measures and procedures which will insure that small business concerns are given an equitable opportunity to share in the procurement program of the corporation for property and services, including but not limited to research, development, construction, maintenance, and repair. (2) insure that all present and future authorized carriers shall have nondiscriminatory use of, and equitable access to, the communications satellite system and satellite terminal stations under just and reasonable charges, classifications, practices, regulations, and other terms and conditions and regulate the manner in which available facilities of the system and stations are allocated among such users thereof; (3) in any case where the Secretary of State, after obtaining the advice of the Administration as to technical feasibility, has advised that commercial communication to a particular foreign point by means of the communications satellite system and satellite terminal stations should be established in the national interest, institute forthwith appropriate proceedings under section 214(d) of this title to require the establishment of such communication by the corporation and the appropriate common carrier or carriers; (4) insure that facilities of the communications satellite system and satellite terminal stations are technically compatible and interconnected operationally with each other and with existing communications facilities; (5) prescribe such accounting regulations and systems and engage in such ratemaking procedures as will insure that any economies made possible by a communications satellite system are appropriately reflected in rates for public communication services; (6) approve technical characteristics of the operational communications satellite system to be employed by the corporation and of the satellite terminal stations; and (7) grant appropriate authorizations for the construction and operation of each satellite terminal station, either to the corporation or to one or more authorized carriers or to the corporation and one or more such carriers jointly, as will best serve the public interest, convenience, and necessity. In determining the public interest, convenience, and necessity the Commission shall authorize the construction and operation of such stations by communications common carriers or the corporation, without preference to either; (8) authorize the corporation to issue any shares of capital stock, except the initial issue of capital stock referred to in section 734(a) of this title, or to borrow any moneys, or to assume any obligation in respect of the securities of any other person, upon a finding that such issuance, borrowing, or assumption is compatible with the public interest, convenience, and necessity and is necessary or appropriate for or consistent with carrying out the purposes and objectives of this chapter by the corporation; (9) insure that no substantial additions are made by the corporation or carriers with respect to facilities of the system or satellite terminal sta.. tions unless such additions are required by the public interest, convenience, and necessity; (10) require, in accordance with the procedural requirements of section 214 of this title, that additions be made by the corporation or carriers with respect to facilities of the system or satellite terminal stations where such additions would serve the public interest, convenience, and necessity; and (11) make rules and regulations to carry out the provisions of this chapter. (Pub. L. 87-624, title II, § 201, Aug. 31, 1962, 76 Stat. 421.) REFERENCES IN TEXT The Communications Act of 1934, as amended, referred to in subsec. (c), is classified to chapter 5 of this title. EX. ORD. No. 11191. ADMINISTRATION OF CHAPTER Ex. Ord. No. 11191, Jan. 4, 1965, 30 F.R. 29, as amended by Ex. Ord. No. 11556, Sept. 4, 1970, 35 F.R. 14193, provided: By virtue of the authority vested in me by Section 301 of title 3 of the Uniited States Code, and as President of the United States, it is hereby ordered as follows: 47-5000-71-vol. 1065 SECTION 1. Definitions. As used in this order: (a) The term "the Act" means the Communications Satellite Act of 1962 (76 Stat. 419) (this chapter), and includes, except as may for any reason be inappropriate, that Act as amended from time to time. (b) The term "the Corporation" means the Communications Satellite Corporation (incorporated on February 1, 1963, under title III of the Act [sections 731-735 of this title] and under the District of Columbia Business Corporation Act). (c) The term "the Director" means the Director of the Office of Telecommunications Policy. (d) The term "the Secretary" means the Secretary of State or his designees. SEC. 2. Director of the Office of Telecommunications Policy. (a) Subject to the provisions of this order, the Director shall generally advise and assist the President in connection with the functions conferred upon the President by the provisions of Section 201(a) of the Act [subsec. (a) of this section]. (b) The Director shall: (1) Aid in the planning and development, and aid in fostering the execution, of a national program for the establishment and operation, as expeditiously as possible, of a commercial communications satellite system. (2) Conduct a continuous review of all phases of the development and operation of such a system, including the activities of the Corporation. (3) Coordinate the activities of governmental agencies with responsibilities in the field of telecommunication, so as to insure that there is full and effective compliance at all times with the policies set forth in the Act [this chapter]. (4) Make recommendations to the President and others as appropriate, with respect to all steps necessary to insure the availability and appropriate utilization of the communications satellite system for general Government purposes in consonance with Section 201(a) (6) of the Act [subsec. (a) (6) of this section]. (5) Help attain coordinated and efficient use of the electromagnetic spectrum and the technical compatibility of the communications satellite system with existing communications facilities both in the United States and abroad. (6) Prepare, for consideration by the President, such Presidential action documents as may be appropriate under Section 201(a) of the Act [subsec. (a) of this section], make necessary recommendations to the President in connection therewith, and keep the President currently informed with respect to the carrying out of the Act [this chapter]. (7) Serve as the chief point of liaison between the President and the Corporation. SEC. 3. Secretary of State. (a) The Secretary shall exercise the supervision provided for in Section 201 (a) (4) of the Act (subsec. (a) (4) of this section] and, in consonance with Section 201(a) (5) of the Act [subsec. (a) (5) of this section) shall further timely arrangements for foreign participation in the establishment and use of a communications satellite system. (b) The Secretary shall have direction of the foreign relations of the United States with respect to the Act [this chapter), including all negotiations by the United States with foreign governments or with international bodies in connection with the Act (this chapter]. SEC. 4. Annual reports. The Director shall timely submit to the President each year the report (including evaluations and recommendations) provided for in Section 404 (a) of the Act [section 744 (a) of this title]. SEC. 5. Assistance and cooperation. The Director and the Secretary shall effect such mutual coordination, and all other federal agencies concerned, and the Corporation, shall furnish the Director and the Secretary such assistance and documents, and shall otherwise extend to them such cooperation, as will enable the Director and the Secretary properly to carry out their responsibilities under this order and best promote the implementation of the Act (this chapter] in an orderly and expeditious manner. In connection with his responsibilities under section 3 of this order, the Secretary shall consult with the Director and other federal officers concerned, and, as may be appropriate, with the Corporation. SEC. 6. Functions reserved. The functions, or parts of functions, conferred upon the President by the Act [this chapter] that are not assigned herein are reserved for the President. LYNDON B. JOHNSON. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 735, 744 of this title. SUBCHAPTER III.-COMMUNICATIONS SUBCHAPTER REFERRED TO IN OTHER SECTIONS This subchapter is referred to in sections 702, 721 of this title. § 731. Creation of corporation; non-Government agency; laws applicable to corporation; reservation of right to amend or repeal chapter. There is authorized to be created a communications satellite corporation for profit which will not be an agency or establishment of the United States Government. The corporation shall be subject to the provisions of this chapter and, to the extent consistent with this chapter, to the District of Columbia Business Corporation Act. The right to repeal, alter, or amend this chapter at any time is expressly reserved. (Pub. L. 87-624, title III, § 301, Aug. 31, 1962, 76 Stat. 423.) REFERENCES IN TEXT The District of Columbia Business Corporation Act, referred to in the text, is classified to D.C. Code § 29-901 et seq. § 732. Process of organization. The President of the United States shall appoint incorporators, by and with the advice and consent of the Senate, who shall serve as the initial board of directors until the first annual meeting of stockholders or until their successors are elected and qualified. Such incorporators shall arrange for an initial stock offering and take whatever other actions are necessary to establish the corporation, including the filing of articles of incorporation, as approved by the President. (Pub. L. 87-624, title III, § 302, Aug. 31, 1962, 76 Stat. 423.) § 733. Directors and officers. (a) Board of directors; qualifications; chairman; appointment by President; term; election by stockholders; percentage of stock ownership determining right to elect; cumulative voting; amendment of articles of incorporation; bylaws for national emergencies. The corporation shall have a board of directors consisting of fifteen individuals who are citizens of the United States, of whom one shall be elected annually by the board to serve as chairman. Three members of the board shall be appointed by the President of the United States, by and with the advice and consent of the Senate, effective the date on which the other members are elected, and for terms of three years or until their successors have been appointed and qualified, and any member so appointed to fill a vacancy shall be appointed only for the unexpired term of the director whom he succeeds. The remaining twelve members of the board shall be elected annually by the stockholders. Six of such members shall be elected by those stockholders who are not communications common carriers, and the remaining six such members shall be elected by No stockholder who is a communications common carrier and no trustee for such a stockholder shall vote, either directly or indirectly, through the votes of subsidiaries or affiliated companies, nominees, or any persons subject to his direction or control, for more than three candidates for membership on the board, except that in the event the number of shares of the voting capital stock of the corporation issued and outstanding and owned either directly or indirectly by communications common carriers as of the record date for the annual meeting is less than 8 per centum of the total number of shares of the voting capital stock of the corporation issued and outstanding, any stockholder who is a communications common carrier shall be entitled to vote at such meeting for candidates for membership on the board in the same manner as all other stockholders. Subject to the foregoing limitations, the articles of incorporation of the corporation shall provide for cumulative voting under section 27 (d) of the District of Columbia Business Corporation Act (D.C. Code, sec. 29-911(d)). The articles of incorporation of the corporation may be amended, altered, changed, or repealed by a vote of not less than 663 per centum of the outstanding shares of the voting capital stock of the corporation owned by stockholders who are communications common carriers and by stockholders who are not communications common carriers, voting together, if such vote complies with all other requirements of this chapter and of the articles of incorporation of the corporation with respect to the amendment, alteration, change, or repeal of such articles. The corporation may adopt such bylaws as shall, notwithstanding the provisions of section 36 of the District of Columbia Business Corporation Act (D.C. Code, sec. 29-916d), provide for the continued ability of the board to transact business under such circumstances of national emergency as the President of the United States, or the officer designated by him, may determine, after February 18, 1969, would not permit a prompt meeting of a majority of the board to transact business. (b) President of corporation; designation and appointment of other officers; compensation; United States citizenship of officers; dual salary prohibition. The corporation shall have a president, and such other officers as may be named and appointed by the board, at rates of compensation fixed by the board, and serving at the pleasure of the board. No individual other than a citizen of the United States may be an officer of the corporation. No officer of the corporation shall receive any salary from any source other than the corporation during the period of his employment by the corporation. (Pub. L. 87624, title III, § 303, Aug 31, 1962, 76 Stat. 423; Mar. 12, 1969, Pub. L. 91-3, § 1, 83 Stat. 4.) AMENDMENTS 1969-Subsec. (a). Pub. L. 91-3 specified the number of directors on the board at fifteen, substituted provisions that the three members appointed by the President serve for a term of three years each for provisions that such appointees serve terms of one, two, and three years, respectively, set forth the formula authorizing the election of directors by carriers and noncarriers to be based upon their respective percentage of ownership of the autstanding capital stock, provided a method for amending, altering, changing, or repealing the articles of incorporation, and authorized the board to adopt bylaws permitting the corporation to transact business in future national emergencies. MEETING OF BOARD SUBSEQUENT TO MARCH 12, 1969 FOR ELECTION OF DIRECTORS; TERM OF OFFICE Section 2 of Pub. L. 91-3 provided that: "As promptly as the board of directors of the Communications Satellite Corporation shall determine to be practical after the date of the amendment of this Act (March 12, 1969), a meeting of the stockholders of the corporation shall be called for the purpose of electing twelve members of the board in accordance with subsection (a) of section 303 of the Communications Satellite Act of 1962 as amended by the first section of this Act (this section). The members of the board elected at such meeting shall serve until the next annual meeting of stockholders or until their successors have been elected and qualified." STATUS AND AUTHORITY OF BOARD MEMBERS ELECTED PRIOR TO MARCH 12, 1969 Section 3 of Pub. L. 91-3 provided that: "The status and authority of the members of the board of directors of the Communications Satellite Corporation who were elected to the board before the date of the enactment of this Act (March 12, 1969] and who are serving as members of the board on such date shall not be in any way impaired or affected until their successors have been elected and qualified in accordance with section 2 of this Act [set out as a note under this section]." SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 702 of this title. §734. Financing of corporation. (a) Capital stock; amount of issue; no par value shares; voting rights; dividends; price and public distribution of initial offering; shareholder eligibility. The corporation is authorized to issue and have outstanding, in such amounts as it shall determine, shares of capital stock, without par value, which shall carry voting rights and be eligible for dividends. The shares of such stock initially offered shall be sold at a price not in excess of $100 for each share and in a manner to encourage the widest distribution to the American public. Subject to the provi sions of subsections (b) and (d) of this section, shares of stock offered under this subsection may be issued to and held by any person. (b) Authorized carriers; definition; shareholder eligibility; percentage reservation of shares; voting rights limitation of authorized carriers and other stockholders. (1) For the purposes of this section the term "authorized carrier" shall mean a communications common carrier which is specifically authorized or which is a member of a class of carriers authorized by the Commission to own shares of stock in the corporation upon a finding that such ownership will be consistent with the public interest, convenience, and necessity. (2) Only those communications common carriers which are authorized carriers shall own shares of stock in the corporation at any time, and no other communications common carrier shall own shares either directly or indirectly through subsidiaries or affiliated companies, nominees, or any persons subject to its direction or control. Fifty per centum of the shares of stock authorized for issuance at any time by the corporation shall be reserved for purchase by authorized carriers and such carriers shall in the aggregate be entitled to make purchases of the reserved shares in a total number not exceeding the total number of the nonreserved shares of any issue purchased by other persons. At no time after the initial issue is completed shall the aggregate of the shares of voting stock of the corporation owned by authorized carriers directly or indirectly through subsidiaries or affiliated companies, nominees, or any persons subject to their direction or control exceed 50 per centum of such shares issued and outstanding. (3) At no time shall any stockholder who is not an authorized carrier, or any syndicate or affiliated group of such stockholders, own more than 10 per centum of the shares of voting stock of the corporation issued and outstanding. (c) Nonvoting security issues and certificates of indebtedness; rate base. The corporation is authorized to issue, in addition to the stock authorized by subsection (a) of this section, nonvoting securities, bonds, debentures, and other certificates of indebtedness as it may determine. Such nonvoting securities, bonds, debentures, or other certificates of indebtedness of the corporation as a communications common carrier may own shall be eligible for inclusion in the rate base of the carrier to the extent allowed by the Commission. The voting stock of the corporation shall not be eligible for inclusion in the rate base of the carrier. (d) Alien share ownership limitation. Not more than an aggregate of 20 per centum of the shares of stock of the corporation authorized by subsection (a) of this section which are held by holders other than authorized carriers may be held by persons of the classes described in paragraphs (1), (2), (3), (4), and (5) of section 310(a) of this title. (e) Inspection and copying rights. The requirement of section 45 (b) of the District of Columbia Business Corporation Act (D.C. Code, sec. 29-920 (b)) as to the percentage of stock which a stockholder must hold in order to have the rights of inspection and copying set forth in that subsection shall not be applicable in the case of holders of stock of the corporation, and they may exercise such rights without regard to the percentage of stock they hold. (f) Transfer and distribution of shares among authorized carriers. Upon application to the Commission by any authorized carrier and after notice and hearing, the Commission may compel any other authorized carrier which owns shares of stock in the corporation to transfer to the applicant, for a fair and reasonable consideration, a number of such shares as the Commission determines will advance the public interest and the purposes of this chapter. In its determination with respect to ownership of shares of stock in the corporation, the Commission, whenever consistent with the public interest, shall promote the widest possible distribution of stock among the authorized carriers. (Pub. L. 87-624, title III, § 304, Aug. 31, 1962, 76 Stat. 424.) SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 702, 721, of this title. § 735. Powers of corporation; specific activities of corporation; possession of usual powers of stock corporation. (a) In order to achieve the objectives and to carry out the purposes of this chapter, the corporation is authorized to (1) plan, initiate, construct, own, manage, and operate itself or in conjunction with foreign governments or business entities a commercial communications satellite system; (2) furnish, for hire, channels of communication to United States communications common carriers and to other authorized entities, foreign and domestic; and (3) own and operate satellite terminal stations when licensed by the Commission under section 721 (c) (7) of this title. (b) Included in the activities authorized to the corporation for accomplishment of the purposes indicated in subsection (a) of this section, are, among others not specifically named (1) to conduct or contract for research and development related to its mission; (2) to acquire the physical facilities, equipment and devices necessary to its operations, including communications satellites and associated equipment and facilities, whether by construction, purchase, or gift; (3) to purchase satellite launching and related services from the United States Government; (4) to contract with authorized users, including the United States Government, for the services of the communications satellite system; and (5) to develop plans for the technical specifications of all elements of the communications satellite system. (c) To carry out the foregoing purposes, the corporation shall have the usual powers conferred upon a stock corporation by the District of Columbia Busi ness Corporation Act. (Pub. L. 87-624, title III, § 305, Aug. 31, 1962, 76 Stat. 425.) REFERENCES IN TEXT The District of Columbia Business Corporation Act, referred to in subsec. (c), is classified to D.C. Code § 29901 et seq. SUBCHAPTER IV. - MISCELLANEOUS PROVISIONS § 741. Common carrier status of corporation; laws applicable to corporation; common carrier activity; conflict of laws. The corporation shall be deemed to be a common carrier within the meaning of section 3(h) of the Communications Act of 1934, as amended, and as such shall be fully subject to the provisions of title II and title III of that Act. The provision of satellite terminal station facilities by one communication common carrier to one or more other communications common carriers shall be deemed to be a common carrier activity fully subject to the Communications Act. Whenever the application of the provisions of this chapter shall be inconsistent with the application of the provisions of the Communications Act, the provisions of this chapter shall govern. (Pub. L. 87-624, title IV, § 401, Aug. 31, 1962, 76 Stat. 426.) REFERENCES IN TEXT Section 3(h) of the Communications Act of 1934, as amended, referred to in the text, is classified to section 153(h) of this title. Title II and title III of that Act, referred to in the text, are such titles of the Communications Act and are classified to subchapters II and III of chapter 5 of this title. The Communications Act, referred to in the text, is classified to chapter 5 of this title. § 742. Foreign business negotiations of corporation; notice to Department Department of State; advice and assistance from Department of State. Whenever the corporation shall enter into business negotiations with respect to facilities, operations, and services authorized by this chapter with any international or foreign entity, it shall notify the Department of State of the negotiations, and the Department of State shall advise the corporation of relevant foreign policy considerations. Throughout such negotiations the corporation shall keep the Department of State informed with respect to such considerations. The corporation may request the Department of State to assist in the negotiations, and that Department shall render such assistance as may be appropriate. (Pub. L. 87-624, title IV, § 402, Aug. 31, 1962, 76 Stat. 426.) § 743. Sanctions. (a) Petition of Attorney General for equitable relief; venue. If the corporation created pursuant to this chapter shall engage in or adhere to any action, practices, or policies inconsistent with the policy and purposes declared in section 701 of this title, or if the corporation or any other person shall violate any provision of this chapter, or shall obstruct or interfere with any activities authorized by this chapter, or shall refuse, fail, or neglect to discharge his duties and responsibilities under this chapter, or shall |