- Field Operations
- Overview
- Field Office Locations
- Facility Clearance Branch (FCB)
- Office of Designated Approving Authority (ODAA)
- Industry Tools
- NISPOM/ISLs (Security Library)
- Foreign Ownership, Control or Influence
- Overview
- Contact Us
- FOCI Policy
- FOCI Conferences
- FOCI Mitigation Instruments
- National Interest Determinations
- Outside Director/Proxy Holder Information
- Sample Technology Control Plan
- FOCI Collocation
- FOCI FAQs
- International Division
- Overview
- Limited Access Authorizations (LAAs) for Non-U.S. Citizens
- Policy
- Overview
- Contact Us
- Policy FAQs
- NISPOM/ISLs (Security Library)
- Policy News/Archives
- Agency Agreements
Comparison: Special Security Agreement & Proxy Agreement
SIMILARITIES/DIFFERENCES IN PROXY/VOTING TRUST AGREEMENT AND SPECIAL SECURITY AGREEMENT
PROXY/VOTING TRUST | SPECIAL SECURITY AGREEMENT |
---|---|
Bound by all the requirements of any cleared firm in the NISP | Bound by all the requirements of any cleared firm in the NISP |
US Company must be organized, structured and financed as a viable business entity independent from the foreign investor | |
Prerogatives of ownership surrendered by foreign investor to US Proxy Holders/Trustees | Prerogatives of ownership retained by foreign investor with decisions monitored by US Outside Directors |
Proxy Holders exercise all prerogatives of ownership with complete freedom to act independently from the foreign investor with the following exceptions: - Sale or disposal of US company's assets or a substantial part thereof - Pledges, mortgages, or other encumbrances on the capital stock - Mergers, consolidations or reorganizations - Dissolution of the US company - Filing of a bankruptcy petition |
|
Foreign investor Board member may have direct voice in business management through Board representation while denying unauthorized access to classified and export-controlled information | |
Proxy Holders/Trustees must be cleared to level of facility clearance | Outside Directors must be cleared to level of facility clearance |
No Access Limitations (Can access proscribed information) | Access Limitations - Proscribed Information (TS, SCI, SAP, COMSEC & RD) may require National Interest Determination |
3 cleared U.S. citizens as Proxy Holders/Trustees | 3 cleared U.S. citizens as Outside Directors |
1 or 2 US citizen cleared Officers/Directors | |
1 or 2 uncleared Inside Directors representing foreign investor | |
Only Proxy Holders/Trustees may elect other board members | |
Government Security Committee (GSC) - Proxy Holders/Trustees - Cleared Officer/Directors |
Government Security Committee (GSC) - Outside Directors - Cleared Officer/Directors |
Facility Security Officer and Technology Control Officers advisors to GSC | Facility Security Officer and Technology Control Officer advisors to GSC |
Visit Approval Procedures for visits with representatives of foreign investor - No Routine Business Visits for foreign investor/affiliates. DSS defers to the GSC to determine the appropriate advance notice required. |
Visit Approval Procedures for visits with representatives of foreign investor - Routine Business Visits. DSS defers to the GSC to determine the appropriate advance notice required. |
Electronic Communications Plan - Telephone - Video teleconferencing - Facsimile, etc. |
Electronic Communication Plan - Telephone - Video teleconferencing - Facsimile, etc. |
Proxy/Voting Trust Operating Procedures | SSA Operating Procedures |
Certification by GSC of Administrative Services, as required | Certification by GSC of Administrative Services, as required |
Technology Control Plan | Technology Control Plan |
Annual Proxy/Voting Trust Compliance Reports | Annual SSA Compliance Report |
Annual Proxy/Voting Trust Compliance Review | Annual Compliance Review |
Annual Certifications by GSC & Proxy Holders/Trustees | Annual Certifications by GSC Members & Outside Directors |
Subject to security oversight as any other cleared firm in the NISP | Subject to security oversight as any other cleared firm in the NISP |
Proxy/Voting Trust Agreement expires 5 years from date of execution | SSA expires 5 years from date of execution |