Rev. Ruling 56-385

Corporate Officer

Advice has been requested (1) whether an officer of a corporation, whose application under section 8 of the Federal Alcohol Administration Act to hold such position has been approved, may later on take a different office with the same corporation without filing a new application, and (2) whether an officer of a corporation engaged in business as a distiller, rectifier, or blender of distilled spirits, may take a position with an inactive affiliated company without filing an application under section 8 of the Act.

Section 8 of the Federal Alcohol Administration Act provides, in part, as follows:

(a) Except as provided in subsection (b), it shall be unlawful for any individual to take office *** as an officer or director of any company, if his doing so would make him an officer or director of more than one company engaged in business as a distiller, rectifier, or blender of distilled spirits, or of any such company and of a company which is an affiliate of any company engaged in business as a distiller, rectifier, or blender of distilled spirits, or of more than one company which is an affiliate of any company engaged in business as a distiller, rectifier, or blender of distilled spirits, unless, prior to taking such office, application made by such individual *** has been granted ***

Where an individual's application to take office in a company has been approved under this section, it is not necessary that such person submit a new application in order to hold a different office in the same company. However, proper notification of such change must, of course, be made to the Assistant Regional Commissioner.

No distinction is made in section 8 of the Act between active and inactive affiliates. Accordingly, it is held that where an individual holds office in a company engaged in business as a distiller, rectifier, blender, and seeks to take office in an affiliate of such company, he must submit an application under this section, regardless of whether such an affiliate is active or inactive.

27 U.S.C. 208