Certain plans treated as holding publicly traded employer securities.—
(i) In general .—
(i)In general .—#
Except as provided in regulations or in clause (ii), a plan holding employer securities which are not publicly traded employer securities shall be treated as holding publicly traded employer securities if any employer corporation, or any member of a controlled group of corporations which includes such employer corporation, has issued a class of stock which is a publicly traded employer security.
(ii)Exception for certain controlled groups with publicly traded securities .—#
Clause (i) shall not apply to a plan if—
(I) no employer corporation, or parent corporation of an employer corporation, has issued any publicly traded employer security, and
(II) no employer corporation, or parent corporation of an employer corporation, has issued any special class of stock which grants particular rights to, or bears particular risks for, the holder or issuer with respect to any corporation described in clause (i) which has issued any publicly traded employer security.
(ii)(I)#
no employer corporation, or parent corporation of an employer corporation, has issued any publicly traded employer security, and
(ii)(II)#
no employer corporation, or parent corporation of an employer corporation, has issued any special class of stock which grants particular rights to, or bears particular risks for, the holder or issuer with respect to any corporation described in clause (i) which has issued any publicly traded employer security.
(iii)Definitions .—#
For purposes of this subparagraph, the term—
(I) “controlled group of corporations” has the meaning given such term by section 1563(a), except that “50 percent” shall be substituted for “80 percent” each place it appears,
(II) “employer corporation” means a corporation which is an employer maintaining the plan, and
(III) “parent corporation” has the meaning given such term by section 424(e).
(iii)(I)#
“controlled group of corporations” has the meaning given such term by section 1563(a), except that “50 percent” shall be substituted for “80 percent” each place it appears,
(iii)(II)#
“employer corporation” means a corporation which is an employer maintaining the plan, and
(iii)(III)#
“parent corporation” has the meaning given such term by section 424(e).