Section 27-3334. ORGANIZATION COSTS AND OTHER BUSINESS COSTS

 

3334.1Expenditures in connection with planning or executing the organization or reorganization of the corporate structure of a business, including mergers and acquisitions, or raising capital (net worth plus long-term liabilities) shall not be allowable.

 

3334.2The cost of any change in the contractor's financial structure, excluding administrative costs of short-term borrowings for working capital, or changes that result in alterations in the rights and interests of security holders, whether or not additional capital is raised, shall not be allowable.

 

3334.3The following recurring costs shall be allowable when allocated on an equitable basis:

 

(a)Registry and transfer charges resulting from changes in ownership of securities issued by the contractor;

 

(b)The cost of shareholders' meetings;

 

(c)The cost of normal proxy solicitations;

 

(d)The cost of preparing and publishing reports to shareholders;

 

(e)The cost of preparing and submitting required reports and forms to taxing and other regulatory bodies;

 

(f)Incidental costs of directors' and committee meetings; and

 

(g)Other similar costs.

 

source

Final Rulemaking published at 35 DCR 1668 (February 26, 1988).