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OnStar Seeks FCC Approval in Transfer of Control to GM's Current Board

Citing “administrative oversight,” OnStar seeks FCC approval for transfer of control from General Motors' Treasury-controlled board to its current board, as well as special temporary authority to keep operating in the meantime, even though the Treasury hasn't had a stake…

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in OnStar parent GM for two years. In a filing posted Monday in docket 15-246, OnStar said Treasury interest in GM's outstanding stock fell below 50 percent in 2010, and it sold its last shares in 2013, but the delay in seeking FCC approval for the transfer of control was due to its unfamiliarity with agency rules. While the commission authorizations at issue are "important to the company’s operations, administrative oversight of this type is not uncommon for companies with such authorizations," OnStar said, saying that as a publicly traded company, GM has a shareholder base that "is constantly changing" and thus it "may not know in advance if such changes could trigger the need for prior Commission approval." OnStar also said such issues are unlikely to come up again, given "the unique facts of this case" -- namely, the Treasury's having majority control of GM in 2009 and later selling that interest in the market.