Public Utility Holding Company Act of 1935

Definition

Federal legislation that regulates public utility holding companies by requiring that certain reports and major company decisions follow regulations handed down by the Securities and Exchange Commission and the federal government. The SEC is permitted to regulate all non-utility related business transactions. This act was necessary due to the fact that states found it hard to regulate public utility holding companies and its affiliates because their operations stretched across state lines. One of the most important pieces of this legislation requires that these holding companies submit reports to the government regarding organizational and financial structure.