Form 8-K

SEC、半期報告制度を提案

2026年5月5日、米国証券取引委員会（SEC）は、国内上場企業に対し、四半期報告から半期報告への移行を選択できるようにする、待望の規則案を発表しました。外国民間発行体は、この規則変更の影響を受けません。この提案は単なる技術的な調整ではなく、半世紀以上にわたり米国資本市場を支えてきた定期報告義務の根本的な見直しを意味するものです。

背景

現在の四半期報告制度は、主にフォーム10-Qを通じて運用されており、その起源は第二次世界大戦後の産業復興期にさかのぼります。当時の市場では、90日ごとの報告サイクルと比較的親和性の高い、安定的かつ予測可能な事業モデルを持つ製造業企業が中心を占めていました。しかし2026年現在、数兆ドル規模のテクノロジー大手から、収益化前のバイオテクノロジー企業に至るまで、上場企業の構成は大きく多様化しており、より柔軟で精緻なアプローチが求められています。この提案は、「一律適用」型の制度から脱却し、発行体がそれぞれの事業特性に応じて開示タイミングを選択できる柔軟な制度へ移行するという、実務重視の考え方を反映したものです。

技術的基盤：フォーム10-Sの創設

この移行の主な仕組みは、新しい提出手段であるフォーム10-Sの創設です。証券取引法の改正案、特に規則13a-13および15d-13の下では、セクション13(a)または15(d)の報告義務の対象となる企業は、フォーム10-Qによる3回の四半期報告書の代わりに、フォーム10-Sによる半期報告書を1回提出することで、中間報告要件を満たすことが認められます。

提出期限および提出者区分

この提案は、既存の定期報告の提出期限を踏襲することで、規模が大きく、システム上重要性の高い発行体における迅速な情報開示が維持されるようにしています。

提出者区分	フォーム10-S提出期限（上半期末からの経過日数）	年次フォーム10-K提出期限（事業年度末からの経過日数）
大規模加速提出会社	40日	60日
加速提出会社	40日	75日
非加速提出会社	45日	90日
小規模報告会社（SRC）	45日	90日

これらの期限は、S-3登録届出書の適格性を維持するために「最新かつ適時」の状態を保つための「明確なルール」であり、厳格に遵守する必要があります。S-3の適格性に関する詳細は、を参照してください。

技術的改正の詳細分析

この提案の核心は、Regulation S-KおよびRegulation S-Xに対する項目ごとの修正にあり、これにより「中間期間」が6か月の期間として再定義される点にあります。

Regulation S-K（非財務情報開示）に対する改正

Regulation S-Kについて、フォーム10-Sの半期サイクルに適合するよう、標準的な開示項目を調整することをSECは提案しています。

第I部：財務情報

項目1：財務諸表：登録企業は、直近6ヶ月間の財務諸表を、前年同期の6ヶ月間と比較した要約財務諸表を提出しなければなりません。
項目2：経営陣による経営成績の分析（項目303）：これが最も重要な変更点です。経営陣は、直近6ヶ月間の業績を、前年同期と比較して説明しなければなりません。SECは、企業は四半期ごとの比較を提供することは引き続き可能であるものの、必須ではなくなり、「短期主義」を軽減するために、年初来（YTD）の業績に重点を置くことを提案しています。
項目3：市場リスクに関する定量的および定性的な開示（項目305）：発行体は、直近6ヶ月間の市場リスク（金利、為替）に関する最新の分析を提供しなければなりません。これは、6ヶ月間の空白期間によってリスクプロファイルの大きな変化が隠蔽される可能性があるグローバル企業にとって特に重要です。
項目4：統制と手続き：経営陣は、開示統制および手続き（DCP）と財務報告に係る内部統制（ICFR）の有効性を、四半期ごとではなく6か月ごとに評価しなければならない。

第II部：その他の情報

項目1：訴訟手続き（項目103）：企業は、6ヶ月間の中間期間中に発生した訴訟手続きにおける重要な進展をすべて開示しなければなりません。
項目1A：リスク要因（項目105）：本提案では、前回の年次報告書以降に発生したすべての重要なリスクについて、包括的な更新を求めています。SECは、半期報告によって生じる「情報開示の空白期間」があるため、フォーム8-Kを用いてリスクの重要な変化をリアルタイムで開示することの重要性が高まっていると強調しています。
項目2：未登録株式売却および売却代金の使途：6ヶ月間に行われたすべての未登録株式売却について、表形式で開示する必要があります。
項目3：優先証券の債務不履行：半期期間中に発生した、支払不履行または30日以内に是正されないその他の重要な債務不履行について、開示する必要があります。
項目 6: 添付書類 (項目 601): この提案では、項目 601 の添付書類要件を、CEO および CFO による必須のセクション 302 および 906 の認証を含め、フォーム 10-S でカバーされる 6 か月の期間を反映するように変更します。

Regulation S-X（財務基盤）に対する改正

Regulation S-Xは財務諸表の様式および内容を規定するものであり、委員会は要約された半期財務諸表の表示を簡素化するため、規則10-01および8-03の修正を提案しています。

規則10-01(c)(2)：改正案では、四半期ごとの財務諸表の記載を任意としています。これにより、会計部門にとって大幅な簡素化が図られます。
監査人によるレビュー要件：提案では、独立した登録会計事務所が、PCAOB基準に従ってフォーム10-Sの中間財務諸表をレビューしなければならないという要件を維持しています。レビューの頻度は年1回（期末監査を除く）に減りますが、レビューの厳格さは変わりません。
規則3-12（陳腐化）：証券法と証券取引法の整合性を保つため、規則3-12は、登録届出書に記載される財務諸表の「経過期間」を調整するために改正される可能性があります。

資本市場およびディール実行への戦略的含意

シニア・ディール弁護士の観点から見ると、半期報告への移行は、取引のタイミングおよび情報の「陳腐化」に関する新たな変数をもたらすことになります。

引受募集における135日ルールの管理

SAS 72 / AU 634の下では、監査人はコンフォートレターにおいて、中間財務情報が135日以内である場合に限り「限定的保証」を提供することができます。半期報告制度の下では、企業はしばしば、直近のレビュー済み財務情報が135日を超過する「ブラックアウト期間」に直面することになります。ディールの実行可能性を維持するためには、Form 8-Kによる開示を伴う任意の四半期レビューによってこの期間をリセットする、あるいはシェルフ・テイクダウンのタイミングをより精緻に調整する必要が生じ得ます。

シェルフ登録および適格性

この提案は、フォーム10-Sを期限内に提出することで、Form S-3 Registration StatementおよびForm F-3 Registration Statementの適格性に関する「最新」要件を満たすことを確保するものです。しかし、義務付けられた報告書の提出間隔が長くなるため、Form 8-Kの「参照による将来への組み込み」が、シェルフ・プロスペクタスを重要な進展状況に合わせて最新の状態に保つための主要な手段となります。

コーポレート・ガバナンスおよびインサイダー取引コンプライアンス

6か月間の報告間隔は、重要な未公表情報（MNPI）が蓄積され得る「ダーク期間」を長期化させることになります。取締役会は、従来は四半期決算発表に連動して設計されてきたインサイダー取引規制および取引ウィンドウを再調整する必要があります。さらに、監査委員会は、半期ベースの監督体制および会議頻度を反映するため、委員会規程（チャーター）を修正する必要が生じる可能性があります。

ナショナル取引所の上場基準への影響

半期報告への移行には、SECの義務付けとナスダックおよびニューヨーク証券取引所の上場基準との慎重な調整が必要となる。従来、両取引所は上場継続資格の要として四半期報告を義務付けてきた。今回の提案は、これらの規則を調和させ、米国内の「標準的な」報告サイクルを、外国民間発行体（FPI）に既に認められている柔軟性と整合させることを目的としている。

定期開示要件の調和

現在、ナスダック規則5250(c)(1)およびニューヨーク証券取引所規則203.01では、上場企業はすべての「必要な定期財務報告書」を証券取引委員会（SEC）に期限内に提出することが義務付けられています。SECレベルでフォーム10-Qが任意提出となった場合、各取引所は内部規則を改定し、フォーム10-Sを「中間報告」要件を満たすものとして認める必要があります。

この調和プロセスは、既存のFPI（外国発行体）に関する枠組みに沿って進められると予想されます。例えば、ナスダック規則5250(c)(2)では、FPIが四半期報告書の代わりにフォーム6-Kを用いて半期ごとの未監査財務情報を提出することが既に認められています。同様に、ニューヨーク証券取引所は2016年にマニュアルを改訂し、FPIに対し半期ごとの財務情報の提供を義務付けました。これは、年1回のみの報告では現代の市場において頻度が低すぎることを認めたためです。今回の規則案は、各取引所がフォーム10-Sを準拠した報告手段として正式に採用することを条件として、この「国際基準」を国内発行体にも拡大するものです。

意思決定者のチェックリスト：移行の評価

取締役会にとって、半期報告への移行を選択する判断は、以下の要素に基づいて行われるべきです。

資金調達計画：135日ルールは、継続的な「シェルフ登録の機動性」を確保するために、実質的に四半期レビューを求めるものとなっています。
ステークホルダーの期待：市場が四半期データへの期待を「シグナル」として示している場合、半期報告への移行は流動性の低下につながる可能性があります。
オペレーションの成熟度：フォーム10-Qにおける期限管理のような「締切規律」がない状況でも、正確性を維持できる内部統制が整備されているかが重要です。
M&A対応力：買収側は最新かつレビュー済みの財務情報を求めるため、5か月間の「情報の空白期間」はデューデリジェンスの長期化につながる可能性があります。

結論：柔軟な環境における円滑な実行

半期報告への移行は、企業に対して長期戦略への集中を可能にし、事務的コストの削減をもたらす画期的な転換点です。しかし、「ディールメーカー」の視点では、この柔軟性は市場の信頼性およびディールの推進力を維持するために、より厳格な計画とForm 8-Kを通じたリアルタイムの情報開示を必要とすることを意味します。

著者

ローラ・アンソニー弁護士

設立パートナー

アンソニー、リンダー＆カコマノリス

企業法務および証券法務事務所

LAnthony@ALClaw.com

May 19, 2026

SEC Proposes Semi-Annual Reporting

On May 5, 2026, the SEC issued its much-anticipated proposed rule providing domestic public companies with the option to transition from a quarterly to a semi-annual reporting framework. Foreign Private Issuers are not impacted by the proposed rule change. This proposal is not merely a technical adjustment but a fundamental re-imagining of the periodic reporting obligations that have governed the American capital markets for over half a century.

Background

The current quarterly reporting regime, primarily executed through Form 10-Q, has its roots in the post-World War II industrial recovery period. At that time, the markets were dominated by manufacturing concerns with linear business models that aligned reasonably well with a 90-day reporting cycle. However, in 2026, the diversity of the public issuer base—ranging from trillion-dollar technology giants to pre-revenue biotechnology firms—demands a more nuanced approach. The proposal reflects a “deal maker” philosophy, moving away from the “one-size-fits-all” mandate toward a flexible, election-based model that allows issuers to

May 19, 2026

SECが規則S-Kに関するパブリックコメントの受付を開始

2026年1月13日、SEC（米国証券取引委員会）のポール・S・アトキンス委員長は、上場企業の提出書類における記述情報開示の中核的枠組みであるレギュレーションS-Kの近代化に向け、広く意見募集（パブリックコメント）を行いました。今回の動きは、近年で最も重要な開示改革の取り組みの一つとなる可能性を示しており、同氏のリーダーシップの下で進められているSECの優先事項の見直しの一環でもあります。アトキンス委員長の優先事項（開示改革を含む）についての詳細は、以下をご覧ください。を参照。

背景：レギュレーションS-K

米国の証券関連開示における定性的開示要件を定める規則S-Kは、1980年代初頭の制定以来、その枠組みを提供してきました。規則S-Kは、証券取引法に基づく定期報告書（例えば、フォーム10-Q、10-K、8-K、20-F、委任状説明書など）および証券法に基づく登録届出書（例えば、S-1、S-3、S-4、F-1、F-3、F-4など）における開示事項を規定しています。対象は、企業の事業内容やリスク要因から、経営陣による経営分析（MD&A）や役員報酬の開示に至るまで、多岐にわたります。

規則S-Kは、サイバーセキュリティ、人的資本管理、気候関連開示といった新たな規制テーマに対応するための段階的な規則制定や解釈指針の蓄積により、その複雑さと分量の両面で着実に拡大してきました。その結果、投資家にとって有用で意思決定に資する情報と、定型的な規制文言との境界が次第に曖昧になり、現行の枠組みが本来の目的を引き続き果たしているのかについて、正当な疑問が生じています。

こうした懸念は新しいものではありません。議会は2014年に開示近代化・簡素化法を可決しました。この法律は、開示要件を合理化することで、新興成長企業や小規模報告企業の報告負担を軽減することを目的としていました（を参照）。この取り組みは、公開報告のコストと複雑さに関する業界の長年の懸念を浮き彫りにし、開示規則は網羅的なチェックリストではなく、重要な情報に焦点を当てるべきだという考え方を改めて強調しました。

過去10年（およびそれ以前）にわたり、規則S-Kの報告要件には数多くの改正が行われてきました。主な例としては、(i) 経営陣による討議および分析（MD&A）の改正 (を参照）、(ii) 事業内容、リスク要因および法的手続の改正 (を参照）、(iii) サイバーセキュリティに関する開示要件 (を参照）です。

また、改正案や提案された改正の中には、幸いにも実現しなかったものもあります。例としては、実現しなかった気候関連開示規則の提案（詳細) や、一度可決されたものの、その後停止された自社株買い開示規則（詳細) などがあります。

重要性：確立された法理と継続中の議論

情報開示に関するすべての規制は理論上、重要性の原則に基づいていますが、実際に何が「重要」とみなされるかは依然として議論の的となっています。

重要性の概念自体には争いはありません。米国最高裁判所は、合理的な投資家が入手可能な情報全体の構成を大きく変えると考える可能性が高い情報は、重要であると定義しています（TSC Industries, Inc. v. Northway, Inc.参照）。重要性は、投資判断に影響を与える可能性が高い情報と、それ以外の情報を区別する線として意図されています。

課題は常にその適用方法にあり、適用基準は時代とともに変化してきました。

幸いなことに、アトキンス委員長は実務的かつ原則に基づくアプローチを取っています。最近の声明では、SECは「投資家にとって重要な情報を引き出すために必要な最小限の有効な規制」のみにとどめ、投資家にとって有用な追加情報の開示は市場原理に委ねるべきだと強調しています。

アトキンス委員長のパブリックコメント要請：検討課題は何か

アトキンス委員長の1月13日の声明では、SECがパブリックコメントを通じて、投資家にとって重要な情報を引き出す開示を促進しつつ、重要でない情報の強制的開示を避けるために、規則S-Kをどのように改訂できるかについて意見を求めていることが明確に示されています。アトキンス委員長の指示のもと、SECのコーポレーション・ファイナンス部門は規則S-Kをレビューし、現行規則が合理的な投資家の意思決定に実質的な影響を与えない開示を強制している可能性のある箇所を特定します。

企業、法律事務所、投資家団体、学術関係者などのステークホルダーは、規則の再設計に関するコメントを2026年4月13日までに提出することができます。このパブリックコメント期間は、SECの次のステップを形作るための参考となり、対象を絞った質問を含むコンセプト・リリースの発行や、最終的には正式な規則提案につながる可能性があります。

なぜ重要か：開示を重要性に立ち返らせる

この取り組みの核心は、基本原則への立ち返りにあります。開示規制の目的は、投資家を誤解させる重要な虚偽記載や情報の欠落を防ぐことであり、周辺的な情報や政治的に流行している情報で投資家を圧倒することではありません。

ここ数年、環境・社会・ガバナンス（ESG）開示の概念が、規制当局の行動や議論の中心にあるかのように見えることがありました（例)。ESG課題の文脈においては、常に中心となる問いは、ESG開示の拡張的な義務が投資家の理解を深めるのか、それとも分析的価値を伴わずに開示量を増やすだけにとどまるのか、という点です。

ESG開示の拡張的義務を支持する立場では、規則S-Kが重要性の原則から逸脱し、投資家保護の枠組みではなく、広範な社会政策の手段としてナラティブ開示要件が利用される可能性があると指摘されています。アトキンス委員長の下にある現在のSECは、SECの報告義務から社会的トレンドに基づく非財務的情報の循環的な開示を削減または排除する方向で前進しています。私はこの立場を支持します。

重要性の観点から規則S-Kへのコメントを求めることによって、SECは開示要件を合理的な投資家の視点に沿ったものに調整しようとしているように見えます。これは、従来の重要性基準に基づくアプローチであり、企業にその基準を満たさない情報を開示させる可能性のある規則を見直すことを目指しています。

注目される具体的領域

パブリックコメント通知では具体的な改正項目は明示されていませんが、アナリストや開示に関する顧問弁護士の間では、規則S-Kの中で改訂や近代化の対象となる可能性がある部分がいくつか挙げられています。

役員報酬に関する記述（項目402）

役員報酬の開示は、特に新興企業や小規模な報告企業において、冗長かつ複雑すぎると長年批判されてきました。アトキンス氏の発表以前から、SECの円卓会議では、報酬開示が規制上の負担に見合うだけの投資家への情報提供を行っているかどうかが検討されており、規則S-Kのこの部分が改善の余地があることを示唆しています。

リスク要因と経営陣による分析・説明（MD&A）

リスク要因の開示は数十ページに及ぶことが多く、定型文に陥りがちです。MD&Aも同様に、分析よりも記述の長さを優先する傾向があります。どちらも、投資家の理解を深めるどころか、意味のある情報を希釈しているとして批判されています。

非財務およびESG関連のナラティブ開示

最近の気候関連開示をめぐる議論は、ESGの概念を財務上の重要性に基づく開示枠組みに統合することの難しさを浮き彫りにしています。特定の環境リスクや業務上のリスクは重要性を有する場合もありますが、義務付けられたナラティブ開示は、投資家の意思決定との明確かつ客観的な関連性を欠くことが多いのが現状です。

ステークホルダーの反応

アトキンス委員長の取り組みに対する初期の反応は、従来から見られる対立構造を反映しています。

発行体や業界団体は、投資家に有益な洞察を提供せずコストだけを増やすチェックリスト型開示の削減を一般的に支持しており、資本形成や効率性の向上を重視しています。
投資家擁護団体やガバナンス関連団体は、特にガバナンス、報酬、リスク管理に関する分野での大幅な削減に抵抗する可能性が高いと見られています。

今後の見通し

コメント期間が4月に終了すると、SECは提出された意見を精査し、概念リリース（潜在的改正に関する詳細な質問を提示する、正式な規則制定の前段階）を発行する可能性があります。その後、フィードバックや規制上の優先事項に応じて、規則S-Kを近代化・明確化する具体的な規則改正案が提示されることになります。

このプロセスは数か月かかる可能性があり、実質的な変更はSECが最終規則を採択するまで実現しません。しかし、アトキンス委員長のパブリックコメント要請は、規模や重要性に基づく開示への大きな転換としてすでに注目されており、米国の上場企業開示の進化における新たな章を示すものと見なされています。

著者

ローラ・アンソニー弁護士

設立パートナー

アンソニー、リンダー＆カコマノリス

企業法務および証券法務事務所

LAnthony@ALClaw.com

証券弁護士ローラ・アンソニー氏とその経験豊富な法律チームは、中小規模の非公開企業、上場企業、そして上場予定の非公開企業に対して継続的な企業顧問サービスを提供しています。ナスダック、NYSEアメリカン、または店頭市場（例えばOTCQBやOTCQX）で上場を目指す企業も対象です。20年以上にわたり、Anthony, Linder & Cacomanolis, PLLC（ALC）は、迅速でパーソナライズされた最先端の法的サービスをクライアントに提供してきました。当事務所の評判と人脈は、投資銀行、証券会社、機関投資家、その他の戦略的提携先への紹介など、クライアントにとって非常に貴重なリソースとなっています。当事務所の専門分野には、1933年証券法の募集・販売および登録要件の遵守（レギュレーションDおよびレギュレーションSに基づく私募取引、PIPE取引、証券トークン・オファリング、イニシャル・コイン・オファリングを含む）が含まれますが、これに限定されません。規制A/A+オファリング、S-1、S-3、S-8フォームの登録申請、S-4フォームによる合併登録、1934年証券取引法の遵守（フォーム10による登録、フォーム10-Q、10-K、8-Kおよび14C情報・14A委任状報告書）、あらゆる形態の株式公開取引、合併・買収（リバースマージャーおよびフォワードマージャーを含む）、ナスダックやNYSEアメリカンを含む証券取引所のコーポレートガバナンス要件への申請および遵守、一般企業取引、一般契約および事業取引が含まれます。アンソニー氏と当事務所は、合併・買収取引において、買収対象企業と買収企業の双方を代理し、合併契約、株式交換契約、株式購入契約、資産購入契約、組織再編契約などの取引文書を作成します。ALC法務チームは、公開企業が連邦および州の証券法やSROs要件に準拠することを支援しており、15c2-11申請、社名変更、リバース・フォワードスプリット、本拠地変更などにも対応しています。アンソニー氏はまた、中堅・中小企業向けの業界ニュースのトップ情報源であるSecuritiesLawBlog.comの著者であり、企業財務に特化したポッドキャスト『LawCast.com: Corporate Finance in Focus』のプロデューサー兼ホストでもあります。当事務所は、ニューヨーク、ロサンゼルス、マイアミ、ボカラトン、ウェストパームビーチ、アトランタ、フェニックス、スコッツデール、シャーロット、シンシナティ、クリーブランド、ワシントンD.C.、デンバー、タンパ、デトロイト、ダラスなど、多くの主要都市でクライアントを代理しています。

アンソニー氏は、Crowdfunding Professional Association（CfPA）、パームビーチ郡弁護士会、フロリダ州弁護士会、アメリカ弁護士会（ABA）および連邦証券規制やプライベート・エクイティ・ベンチャーキャピタルに関するABA委員会など、さまざまな専門団体のメンバーです。パームビーチ郡およびマーティン郡のアメリカ赤十字社、スーザン・コーメン財団、オポチュニティ社（Opportunity, Inc.）、ニュー・ホープ・チャリティーズ、フォー・アーツ協会（Society of the Four Arts）、ノートン美術館、パームビーチ郡動物園協会、クラヴィス・パフォーミング・アーツ・センターなど、複数の地域社会慈善団体を支援しています。

アンソニー氏はフロリダ州立大学ロースクールを優秀な成績で卒業しており、1993年から弁護士として活動しています。

Anthony, Linder & Cacomanolis, PLLC にお問い合わせください。技術的な内容に関するご質問もいつでも歓迎いたします。

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Anthony, Linder & Cacomanolis, PLLCは、本情報を教育目的の一般情報として提供しています。本情報は一般的な内容であり、法的助言を構成するものではありません。さらに、本情報の利用や送受信は、当事務所との弁護士–依頼者関係を成立させるものではありません。したがって、本情報を通じて当事務所と行ういかなる通信も、特権または機密として扱われることはありません。

March 24, 2026

SEC Opens Public Comment On Regulation S-K

On January 13, 2026, SEC Chair Paul S. Atkins issued a high-profile request for public comment on modernizing Regulation S-K, the SEC’s central framework for narrative disclosures in public company filings. This move signals one of the most consequential disclosure reform efforts in years and comes as part of a broader recalibration of SEC priorities under his leadership. For more on Chair Atkins priorities, including disclosure reform, see HERE.

Background – Regulation S-K

Regulation S-K has governed the qualitative disclosure requirements in U.S. securities filings since it was first adopted in the early 1980s. Regulation S-K governs the disclosures made in periodic reports under the Exchange Act (for example Forms 10-Q, 10-K, 8-K, 20-F, proxy statements…) and registration statements filed under the Securities Act (for example, S-1, S-3, S-4, F-1, F-3, F-4, etc..). Regulation S-K encompasses items ranging from a company’s business description and risk factors to management’s discussion and analysis (MD&A) and executive compensation disclosures.

Over time, Regulation

March 24, 2026

Rule 144 – A Deep Dive – Part 3 – Current Public Information

In this third installment of my series on Rule 144, I will begin discussing the various conditions for the use of the Rule, including the current public information requirement. In the first installment, I provided a high-level review of Rule 144 – see HERE and in the second, discussed definitions including the impactful “affiliate” definition – see HERE.

Conditions for Use of Rule 144

General

As set out in the first blog in this series, Rule 144 provides certain conditions that must be met by selling affiliates and selling non-affiliates which conditions vary depending on whether the Issuer of the securities is a reporting or non-reporting company and whether the Issuer or ever has been a shell company. The high-level Rule 144 requirements for non-affiliates include: (i) holding period; (ii) availability of current public information; and (iii) no shell status ineligibility. The high-level Rule 144 requirements for affiliates (i.e. holders of control securities) include: (i) holding

August 26, 2025

SEC Publishes More New C&DI On Cybersecurity Rules

On June 24, 2024 the SEC published five (5) new compliance and disclosure interpretations (C&DI) on cybersecurity incident disclosures supplementing the C&DI published in December 2023 (see HERE).

Cybersecurity

In July, 2023 the SEC adopted final new rules requiring disclosures for both domestic and foreign companies related to cybersecurity incidents, risk management, strategy and governance (see HERE for a review of the new rules).

The cybersecurity rules add new Item 1.05 to Form 8-K requiring disclosure of a material cybersecurity incident including the incident’s nature, scope, timing, and material impact or reasonably likely impact on the company. An Item 1.05 Form 8-K is due within four business days following determination that a cybersecurity incident is material. Given the sensitive nature of cybersecurity crimes, the SEC has added a provision allowing an 8-K to be delayed if it is informed by the United States Attorney General, in writing, that immediate disclosure would pose a substantial risk to national security or

July 30, 2024

F-3 Eligibility

The ability to utilize a shelf registration statement on Form F-3 or S-3 offers significant advantages to publicly traded companies. A Form F-3/S-3 allows for variably priced offerings – that is offerings made either at-the-market or at other than fixed prices. Only companies that are eligible for F-3/S-3 can complete primary (or indirect primary) offerings at prices other than a fixed price (for more on primary offerings see HERE).

I have previously written a detailed blog related to S-3 eligibility (see HERE) and although the requirements for an F-3 are substantially similar, there are some key differences due to the different regulatory framework applicable to foreign private issuers (“FPIs”) – i.e. “F Filers.” Like an S-3, F-3 eligibility is comprised of both registrant or company requirements and transaction requirements.

Moreover, like Form S-3, a Form F-3 specifies generally that the Form may not be used for an offering of asset-backed securities.

Registrant Requirements

Companies that meet the

July 16, 2024

NASDAQ Issues New FAQ On MarketWatch News Submittals

In November 2023, Nasdaq added a new FAQ providing guidance on completing the electronic disclosure form to provide the required advance notice to Nasdaq’s MarketWatch Department when material non-public information is being announced, including news releases. I realized that while I have blogged about the Nasdaq notification requirements in general (see HERE), the recent changes to the Nasdaq reverse split rules, including MarketWatch notification (see HERE) and Nasdaq continued listing requirements (see HERE), I have not yet drilled down on the Nasdaq Rule 5250(b)(1) MarketWatch disclosure requirements, until now.

As an aside, Nasdaq Rule 5250 is a lengthy rule covering multiple facets of listed company obligations (including the reverse split and notification requirements and several of the corporate governance requirements in the blogs linked to above). This blog focuses on Rule 5250(b)(1) and its related IM discussions related to the disclosure of material non-public information.

Nasdaq Rule 5250(b)(1)

Nasdaq Rule 5250(b)(1) sets forth a listed company’s obligation

July 9, 2024

SEC Provides Guidance On Sell To Cover Exception In Rule 10b5-1

Updated Rule 10b5-1 adds conditions to the affirmative defense to insider trading. The Rule now has cooling-off periods before trading can commence under a Rule 10b5-1 plan and adds a condition that all persons entering into a Rule 10b5-1 plan must act in good faith with respect to the plan. The Rule also requires directors and officers to include representations in their plans certifying at the time of the adoption of a new or modified Rule 10b5-1 plan that: (i) they are not aware of any material nonpublic information about the issuer or its securities; and

June 18, 2024

The New 10-K Requirements For Annual Report Season

As 2023 has come to a close it is time to prepare for the upcoming annual report season and this year there are multiple new requirements to be cognizant of. With annual reports being followed by proxies and first quarter 10-Q’s in rapid succession, it is important to get ahead of all the new disclosures. This blog will summarize each of the new disclosures and include some practice tips.

First, though is what is suddenly not a new requirement and in particular the share repurchase disclosures. Adopted on May 3, 2023 (see HERE) the new disclosure requirements would have taken effect for inclusion in the upcoming 10-K season. Following a successful court challenge, on November 22, 2023, the SEC issued an order postponing the effective date of the new rules pending further SEC action (see HERE). However, the SEC may not get the opportunity to resurrect the rules. The U.S. Chamber of Commerce is doubling down and

January 2, 2024

NASDAQ Amends Rules For Waivers To Code Of Conduct

On September 5, 2023, Nasdaq adopted amendments to Listing Rule 5610 and IM-5610 requiring listed companies to maintain a code of conduct and to disclose certain waivers. This is also a good time to discuss the code of conduct/code of ethics requirements applicable to all companies subject to the Securities Exchange Act of 1934 (“Exchange Act”) reporting requirements.

Code of Conduct/Code of Ethics

Section 406(c) of the Sarbanes-Oxley Act of 2002 (“SOX”) requires all companies that are subject to the Exchange Act reporting requirements to disclose whether they have adopted a code of ethics that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. If the company has not adopted such a code, it must explain why it has not done so.

SOX defines a code of ethics as written standards reasonably designed to deter wrongdoing and to promote: (i) honest and ethical conduct including related to conflicts of

December 26, 2023

SEC Adopts Final New Rules On Cybersecurity Disclosures

On July 26, 2023, the SEC adopted final new rules requiring disclosures for both domestic and foreign companies related to cybersecurity incidents, risk management, strategy and governance. The proposed rules were published in March 2022 (see HERE). In response to numerous comments, the final rules made several changes to the proposal, including narrowing the disclosures in both the Form 8-K/6-K and annual reports on Form 10-K and 20-F.

The final rules add new Item 1.05 to Form 8-K requiring disclosure of a material cybersecurity incident including the incident’s nature, scope, timing, and material impact or reasonably likely impact on the company. An Item 1.05 Form 8-K will be due within four business days following determination that a cybersecurity incident is material. Given the sensitive nature of cybersecurity crimes, the SEC has added a provision allowing an 8-K to be delayed if it is informed by the United States Attorney General, in writing, that immediate disclosure would pose a substantial

August 29, 2023

Furnish VS. Filed

Over the years I’ve noted that information required pursuant to various disclosure obligations, or new or amended rules, may be “furnished” versus “filed” with the SEC, but I realize in a “let’s get back to basics” moment, I have not yet (until now) provided a detailed explanation of what that means. In summary, information that is “filed” with the SEC carries Section 18 liability, only “filed” information can be incorporated by reference into other filings, such as an S-3 registration statement, and only “filed” SEC reports affect S-3 eligibility.

Section 18

Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”) imposes liability on any person that makes or causes to be made any statement in any application, report or document “filed” pursuant to the Exchange Act or any rule thereunder which statement was at the time and in the light of the circumstances under which it was made false or misleading with

July 18, 2023

SEC Publishes Guidance On Rule 10b5-1 Amendments

On May 25, 2023, the SEC published three new Compliance and Disclosure Interpretations (C&DI) on the recently effective Rule 10b5-1 amendments. The new rules were adopted on December 14, 2022 (see HERE) to enhance disclosure requirements and investor protections against insider trading. The amendments include updates to Rule 10b5-1(c)(1), which provides an affirmative defense to insider trading liability under Section 10(b) and Rule 10b-5.

The changes updated the conditions that must be met for the 10b5-1 affirmative defense, including adding cooling-off periods before trading can commence under a Rule 10b5-1 plan and a condition that all persons entering into a Rule 10b5-1 plan must act in good faith with respect to the plan. The amendments also require directors and officers to include representations in their plans certifying at the time of the adoption of a new or modified Rule 10b5-1 plan that: (i) they are not aware of any material nonpublic information about the issuer

July 5, 2023

SEC Adopts Amendments To Rule 10b5-1 Insider Trading Plans

On December 14, 2022, the SEC adopted amendments to Rule 10b5-1 under the Securities Exchange Act of 1934 (“Exchange Act”) to enhance disclosure requirements and investor protections against insider trading. The amendments include updates to Rule 10b5-1(c)(1), which provides an affirmative defense to insider trading liability under Section 10(b) and Rule 10b-5. The proposed rules were published in HERE. Although there is a statutory framework, the laws surrounding insider trading are largely based on judicial precedence and are difficult to navigate. The rule amendments are intended to provide clarity to the marketplace.

Since the adoption of Rule 10b5-1, courts, commentators, and members of Congress have expressed concern that the affirmative defense under Rule 10b5-1(c)(1)(i) has allowed traders to take advantage of the liability protections provided by the rule to opportunistically trade securities on the basis of material nonpublic information. Furthermore, some academic studies of Rule 10b5-1 trading arrangements have shown that corporate insiders trading pursuant to

January 24, 2023

SEC Issues New Mergers And Acquisitions Related C&DI

Last week was a very busy regulatory week for the SEC, including issuing six new compliance and disclosure interpretations (C&DI) for merger and acquisition transactions, most of which directly impact SPAC business organization transactions; proposed rules on SPACs’ shell companies and the use of financial projections; proposed rules to modify the definition of “dealer” for purposes of broker-dealer registration requirements; and a new accounting bulletin impacting the accounting treatment of cryptocurrencies by exchanges. This blog will discuss the new C&DI.

Background

The rules related to disclosure obligations, including in Forms 8-K, S-4 registration statements and proxy materials, and the filing of exhibits associated with a material contract, including merger agreements, have evolved over the past few years (see here related to confidential treatment of material contracts – HERE). In March 2021, the SEC issued a statement discussing certain legal specifics associated with a SPAC, including expressing concerns regarding disclosures associated with a de-SPAC transaction (i.e., a business

April 5, 2022

SEC Adopts Amendments To Disclosures Related To Acquisitions And Dispositions Of Businesses

One year after proposing amendments to the financial statements and other disclosure requirements related to the acquisitions and dispositions of businesses, in May 2020 the SEC adopted final amendments (see here for my blog on the proposed amendments HERE). The amendments involved a long process; years earlier, in September 2015, the SEC issued a request for public comment related to disclosure requirements for entities other than the reporting company itself, including subsidiaries, acquired businesses, issuers of guaranteed securities and affiliates which was the first step culminating in the final rules (see HERE).

The amendments make changes to Rules 3-05 and 3-14, 8-04, 8-05, and 8-06 of Regulation S-x, as well as Article 11. The SEC also amended the significance tests in the “significant subsidiary” definition in Rule 1-02(w), Securities Act Rule 405, and Exchange Act Rule 12b-2. Like all recent disclosure changes, the proposed rules are designed to improve the information for investors while reducing complexity

October 27, 2020

SPAC IPOs A Sign Of Impending M&A Opportunities

The last time I wrote about special purpose acquisition companies (SPACs) in July 2018, I noted that SPACs had been growing in popularity, raising more money in 2017 than in any year since the last financial crisis (see HERE). Not only has the trend continued, but the Covid-19 crisis, while temporarily dampening other aspects of the IPO market, has caused a definite uptick in the SPAC IPO world.

In April, the Wall Street Journal (WSJ) reported that SPACs are booming and that “[S]o far this year, these special-purpose acquisition companies, or SPACs, have raised $6.5 billion, on pace for their biggest year ever, according to Dealogic. In April, 80% of all money raised for U.S. initial public offerings went to blank-check firms, compared with an average of 9% over the past decade.”

I’m not surprised. Within weeks of Covid-19 reaching a global crisis and causing a shutdown of the U.S. economy, instead of my phone

June 9, 2020

Disclosures Related To Covid-19 – What Investors Want To Know

I’ve written several times about the need for Covid-19 disclosures including public statements by Chair Clayton and William Hinman, the Director of the Division of Corporation Finance and the SEC Division of Corporation Finance Disclosure Guidance Topic No. 9 regarding the SEC’s current views on disclosures that companies should consider with respect to COVID-19. For my summary blog on the topic, see HERE.

As I’ve previously mentioned, my personal thought is that although there are many reasons why disclosure is important, it is especially important now to support investor confidence, activity in our markets and capital raising efforts. If investors are kept informed of the impact of COVID-19 on companies, see that these companies are continuing on and meeting their requirements and that the markets haven’t just fallen into Neverland, they will continue to invest through the trading of securities, and direct investments through PIPE transactions. Further on the broader economic level, transparency and information will bolster confidence on

June 2, 2020

NASDAQ Provides Additional Relief To Shareholder Approval Requirements For Companies Affected By Covid-19

Nasdaq has provided additional relief to listed companies through temporary rule 5636T easing shareholder approval requirements for the issuance of shares in a capital raise. The rule was effective May 4, 2020 and will continue through and including June 30, 2020. The purpose of the rule change is to give listed companies affected by Covid-19 quicker access to much-needed capital.

Temporary Rule 5636T is limited to the transactions and shareholder approval requirements specifically stated in the rule. If shareholder approval is required based on another rule, such as a change of control, or another Nasdaq rule is implicated, those other rules will need to be complied with prior to an issuance of securities.

The Nasdaq shareholder approval rules generally require companies to obtain approval from shareholders prior to issuing securities in connection with: (i) certain acquisitions of the stock or assets of another company (see HERE); (ii) equity-based compensation of officers, directors, employees or consultants (see HERE); (iii)

May 19, 2020

SEC Publishes FAQ On COVID-19 Effect On S-3 Registration Statements

The SEC has issued FAQ on Covid-19 issues, including the impact on S-3 shelf registration statements. The SEC issued 4 questions and answers consisting of one question related to disclosure and three questions related to S-3 shelf registrations.

SEC FAQ

Disclosure

Confirming prior guidance, the SEC FAQ sets forth the required disclosures in the Form 8-K or 6-K filed by a company to take advantage of a Covid-19 extension for the filing of periodic reports. In particular, in the Form 8-K or Form 6-K, the company must disclose (i) that it is relying on the COVID-19 Order (for more information on the Order, see HERE); (ii) a brief description of the reasons why the company could not file the subject report, schedule or form on a timely basis; (iii) the estimated date by which the report, schedule or form is expected to be filed; and (iv) a company-specific risk factor or factors explaining the impact, if material, of

May 12, 2020

Small Business Advocate Urges Capital Raising Relief

On March 4, 2020, the SEC published proposed rule changes to harmonize, simplify and improve the exempt offering framework. The proposed rule changes indicate that the SEC has been listening to capital markets participants and is supporting increased access to private offerings for both businesses and a larger class of investors. Together with the proposed amendments to the accredited investor definition (see HERE), the new rules could have as much of an impact on the capital markets as the JOBS Act has had since its enactment in 2012.

I’ve written a five-part series detailing the rule changes, the first of which can be read HERE. My plan to publish the five parts in five consecutive weeks was derailed by the coronavirus and more time-sensitive articles on relief for SEC filers and disclosure guidance, but will resume in weeks that do not have more pressing Covid-19 topics.

On April 2, 2020, the SEC Small Business Capital Formation Advisory Committee

April 7, 2020

Relief For Persons Affected By The Coronavirus

Last week I published a blog summarizing the relief granted by the SEC for public companies and capital markets participants impacted by the coronavirus (Covid-19) (see HERE). Just as Covid-19 rapidly evolves, so have the regulators response. The SEC has now expanded the relief and issued guidance on public company disclosures related to Covid-19.

While we work to complete the usual filings while in quarantine, a new conversation is starting to develop at a rapid pace. That is, the conversation of opportunity and the accelerating of a more technologically driven economy than ever before. Businesses and service providers must stay nimble and ready to serve the ever changing needs of entrepreneurs and the capital markets – I know we are!

Extension in SEC Reporting Filing Deadlines

On March 25, 2020, the SEC extended its prior conditional relief order such that periodic filings that would have been due from between March 1 and July 1, 2020 can avail themselves of

March 31, 2020

Conditional Relief For Persons Affected By Coronavirus

As the whole world faces unprecedented personal and business challenges, our duty to continue to run our businesses, meet regulatory filing obligations and support our capital markets continues unabated. While we stay inside and practice social distancing, we also need to work each day navigating the new normal. Thankfully many in the capital markets, including our firm, were already set up to continue without any interruption, working virtually in our homes relying on the same technology we have relied on for years.

We all need to remember that the panic selling frenzy will end. Emotions with even out and the daily good news that comes with the bad (for example, the number of cases in China is falling dramatically; some drugs are working to help and the FDA is speeding up review times for others; early signs China’s economy is starting to recover already; scientists around the world are making breakthroughs on a vaccine; etc.) will begin to quell the

March 24, 2020

SEC Testifies At House Financial Services Committee Hearing

On September 24, 2019, all five SEC commissioners gave testimony to, and were questioned by, members of the U.S. House of Representatives Committee on Financial Services. Commissioner Robert J. Jackson, Jr. also gave an opening statement at the Committee hearing.

Commissioner Jackson’s Opening Statement

Commissioner Jackson’s short opening statement was consistent with his prior public views, consisting of a list of three areas in which he believes legislation should intervene to prevent corporate insiders from spending shareholder money to advance their own interests over those of investors.

His first recommendation is to shorten the current four-day 8-K filing requirement in which a company must notify the public of certain material events. For an overview of 8-K filing categories, including the categories that require an advance filing (Regulation FD) or lesser time period than the standard four days, see HERE. Commissioner Jackson states that there is “evidence that corporate insiders often trade during the ‘gap’ between key business events and

October 22, 2019

NYSE American Compliance Guidance MEMO

In January, NYSE Regulation sent out its yearly Compliance Guidance Memo to NYSE American listed companies. The annual letter updates companies on any rule changes from the year and reminds companies of items the NYSE deems important enough to warrant such a reminder.

The only new item in this year’s letter relates to advance notice of stock dividends and distributions. Effective February 1, 2018, the NYSE requires listed companies to provide ten minutes’ advance notice to the exchange of any announcement with respect to a dividend or stock distribution, whether the announcement is during or outside exchange traded hours. This change is consistent with other NYSE and Nasdaq rules which generally require notifications of announcements, including press releases, that could impact trading, at least 10 minutes prior to such notification.

The NYSE letter also provides a list of important reminders to all exchange listed companies, starting with the requirement to provide a timely alert of all material news. Part 4

February 26, 2019

SEC Solicits Comment On Earnings Releases And Quarterly Reports

On December 18, 2018, the SEC published a request for comment soliciting input on the nature, content, and timing of earnings releases and quarterly reports made by reporting companies. The comment period remains open for 90 days from publication. The request is not surprising as earnings releases and quarterly reports were included in the pre-rule stage in the Fall 2018 SEC semiannual regulatory agenda and plans for rulemaking.

The request for comment seek input on how the SEC can reduce burdens on publicly reporting companies associated with quarterly reports while maintaining disclosure effectiveness and investor protections. The SEC also seeks comment on how the existing reporting system, earnings releases and earnings guidance may foster an overly short-term focus by companies and market participants. In addition, the SEC is looking for input on how to make the reporting process less cumbersome to investors, such as by having to compare an earnings release and Form 10-Q for differences.

This has been a

January 15, 2019

SEC Adopts Amendments to Simplify Disclosure Requirements

In August the SEC voted to adopt amendments to certain disclosure requirements in Regulations S-K and S-X (the “S-K and S-X Amendments”) as well as conforming changes throughout the federal securities laws and related forms. The amendments are intended to simplify and update disclosure requirements that are redundant, duplicative, overlapping, outdated or superseded with the overriding goal of reducing compliance burdens on companies without reducing material information for investors. The new amendments finalize and adopt the proposed rules that had previously been issued on July 13, 2016. See my blog on the proposed rule change HERE. The final rule changes were substantially, but not entirely, as proposed.

The Regulation S-X and S-K Amendments come as a result of the Division of Corporation Finance’s Disclosure Effectiveness Initiative and as required by Section 72002 of the FAST Act. The proposing release also requested public comment on a number of disclosure requirements that overlap with, but require information incremental to, U.S. GAAP

October 16, 2018

Proposed SPAC Rule Changes

With the growing popularity of special purpose acquisition companies (SPACs), both the Nasdaq and NYSE have proposed rule changes that would make listings easier, although on June 1, 2018, the Nasdaq withdrew its proposal. SPACs raised more money last year than any year since the financial crisis. The SEC has been delaying action on the proposed rule changes, now pushing off a decision until at least August 2018.

A company that registers securities as a blank check company and whose securities are deemed a “penny stock” must comply with Rule 419 and thus are not eligible to trade. A brief discussion of Rule 419 is below. A “penny stock” is defined in Rule 3a51-1 of the Exchange Act and like many definitions in the securities laws, is inclusive of all securities other than those that satisfy certain delineated exceptions. The most common exceptions, and those that would be applicable to penny stocks for purpose of the SPAC, include: (i)

July 24, 2018

SEC Provides Regulatory Relief To Hurricane Victims

On September 28, 2017, the SEC announced interim final temporary rules (“Exemptive Order”) to provide relief to publicly trading companies, investment companies, accountants, transfer agents, municipal advisors and others affected the Hurricanes Harvey, Irma and Maria. In addition to the interim rules, the SEC urges others not covered by the relief but affected in their ability to provide information to the SEC or shareholders to contact the SEC to seek relief on a case-by-case basis.

Interim Final Temporary Rules

Generally the due date for Exchange Act reports for companies relying on the Exemptive Order shall be October 10, 2017 for those affected by Hurricane Harvey, October 19, 2017 for those affected by Hurricane Irma, and November 2, 2017 for those affected by Hurricane Irma. As such, companies with such extended due dates may also file an additional extension on Form 12b-25 on those dates, and benefit from an additional five days for a Form 10-Q and 15 days for a

October 3, 2017

What Does The SEC Do And What Is Its Purpose?

As I write about the myriad of constantly changing and progressing securities law-related policies, rules, regulations, guidance and issues, I am reminded that sometimes it is important to go back and explain certain key facts to lay a proper foundation for an understanding of the topics which layer on this foundation. In this blog, I am doing just that by explaining what the Securities and Exchange Commission (SEC) is and its purpose. Most of information in this blog comes from the SEC website, which is an extremely useful resource for practitioners, issuers, investors and all market participants.

Introduction

The mission of the SEC is to protect investors, maintain fair, orderly and efficient markets and facilitate capital formation. Although each mission should be a priority, the reality is that the focus of the SEC changes based on its Chair and Commissioners and political pressure. Outgoing Chair Mary Jo White viewed the SEC enforcement division and task of investor protection as her

February 14, 2017

SEC Issues New C&DI Clarifying The Use Of Form S-3 By Smaller Reporting Companies; The Baby Shelf Rule

The SEC has been issuing a slew of new Compliance and Disclosure Interpretations (“C&DI”) on numerous topics in the past few months. I will cover each of these new C&DI in a series of blogs starting with one C&DI that clarifies the availability of Form S-3 for the registration of securities by companies with a public float of less than $75 million, known as the “baby shelf rule.”

The Baby Shelf Rule

Among other requirements, to qualify to use an S-3 registration statement a company must have filed all Exchange Act reports in a timely manner, including Form 8-K, within the prior 12 months and trade on a national exchange. An S-3 also contains certain limitations on the value of securities that can be offered. Companies that have an aggregate market value of voting and non-voting common stock held by non-affiliates of $75 million or more, may offer the full amount of securities under an S-3 registration. For companies

January 17, 2017

SEC Cracks Down On Failure To File 8-K For Financing Activities; An Overview Of Form 8-K

Introduction and Background

On September 26, 2016, and again on the 27th, the SEC brought enforcement actions against issuers for the failure to file 8-K’s associated with corporate finance transactions and in particular PIPE transactions involving the issuance of convertible debt, preferred equity, warrants and similar instruments. Prior to the release of these two actions, I have been hearing rumors in the industry that the SEC has issued “hundreds” of subpoenas (likely an exaggeration) to issuers related to PIPE transactions and in particular to determine 8-K filing deficiencies. Using this as a backdrop, this blog will also address Form 8-K filing requirements in general.

Back in August 2014, the SEC did a similar sweep related to 8-K filing failures associated with 3(a)(10) transactions. See my blog HERE for a discussion of those actions and 3(a)(10) proceedings in general. The 8-K filing deficiency actions were a precursor to a larger SEC investigation on 3(a)(10) transactions themselves which culminated in two well-known

December 13, 2016

Responding To SEC Comments

Background

The SEC Division of Corporation Finance (CorpFin) reviews and comments upon filings made under the Securities Act of 1933 (“Securities Act”) and the Securities Exchange Act of 1934 (“Exchange Act”). The purpose of a review by CorpFin is to ensure compliance with the disclosure requirements under the federal securities laws, including Regulation S-K and Regulation S-X, and to enhance such disclosures as to each particular issuer. CorpFin will also be cognizant of the anti-fraud provisions of the federal securities laws and may refer a matter to the Division of Enforcement where material concerns arise over the adequacy and accuracy of reported information or other securities law violations, including violations of the Section 5 registration requirements. CorpFin has an Office of Enforcement Liason in that regard.

CorpFin’s review and responsibilities can be described with one word: disclosure!

CorpFin selectively reviews filings, although generally all first-time filings, such as an S-1 for an initial public offering or Form 10 registration under

March 29, 2016

SEC Small Business Advisory Committee Public Company Disclosure Recommendations

On September 23, 2015, the SEC Advisory Committee on Small and Emerging Companies (the “Advisory Committee”) met and finalized its recommendation to the SEC regarding changes to the disclosure requirements for smaller publicly traded companies.

By way of reminder, the Committee was organized by the SEC to provide advice on SEC rules, regulations and policies regarding “its mission of protecting investors, maintaining fair, orderly and efficient markets and facilitating capital formation” as related to “(i) capital raising by emerging privately held small businesses and publicly traded companies with less than $250 million in public market capitalization; (ii) trading in the securities of such businesses and companies; and (iii) public reporting and corporate governance requirements to which such businesses and companies are subject.”

The topic of disclosure requirements for smaller public companies under the Securities Exchange Act of 1934 (“Exchange Act”) has come to the forefront over the past year. In early December the House passed the Disclosure Modernization and

October 27, 2015

Will the Disclosure Modernization and Simplification Act of 2014 Simplify Reporting Requirements for ECG’s and Smaller Reporting Companies?

ABA Journal’s 10th Annual Blawg 100

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In early December the House passed the Disclosure Modernization and Simplification Act of 2014, which will now go to the Senate for action—or inaction, as the case may be.

The bill joins a string of legislative and political pressure on the SEC to review and modernize Regulation S-K to eliminate burdensome, unnecessary disclosure with the dual purpose of reducing the costs to the disclosing issuer and ensure readable, material information for the investing public.

The Disclosure Modernization and Simplification Act of 2014, if passed, would require the SEC to adopt or amend rules to: (i) allow issuers to include a summary page to Form 10-K; and (ii) scale or eliminate duplicative, antiquated or unnecessary requirements in Regulation S-K. In addition, the SEC would be required to conduct yet another study on all Regulation S-K disclosure requirements to determine how best to amend and modernize the rules to reduce costs and burdens while

December 23, 2014

CEO and CFO Certifications for Forms 10-Q and 10-K

ABA Journal’s 10th Annual Blawg 100

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A public company with a class of securities registered under Section 12 or which is subject to Section 15(d) of the Securities Exchange Act of 1934, as amended (“Exchange Act”) must file reports with the SEC. The underlying basis of the reporting requirements is to keep shareholders and the markets informed on a regular basis in a transparent manner. Reports filed with the SEC can be viewed by the public on the SEC EDGAR website. The required reports include an annual Form 10-K, quarterly Form 10Q’s and current periodic Form 8-K as well as proxy reports and certain shareholder and affiliate reporting requirements.

These reports are signed by company officers and directors. Moreover, the Sarbanes-Oxley Act of 2002 (“SOX”) implemented a requirement that the company principal executive officer or officers and principal financial officer or officers execute certain personal certifications included with each Form 10-Q and 10-K. Certifications are not required on a

August 26, 2014

The Sale of Unregistered Securities Must Satisfy Form 8-K Filing Requirements In a 3(a)(10) Transaction

Introduction and Background

Recently the Securities and Exchange Commission (“SEC”) has been taking action against public reporting companies for the failure to file a Form 8-K upon the completion of a transaction exempt under Section 3(a)(10) of the Securities Act of 1933, as amended (“Securities Act”). The SEC has served a Wells notice on numerous companies for the failure to file such Form 8-K without any prior communication with such companies. Since enforcement actions for the failure to file a Form 8-K are very rare, it is my view that the SEC is concerned with the 3(a)(10) transaction itself.

A Wells notice, often referred to as a Wells letter, is a notice delivered by the SEC to persons and entities under investigation providing the opportunity to such persons and entities to present their position to the SEC prior to the commencement of an enforcement proceeding. A Wells letter gives notice of the SEC’s intended charges and enforcement recommendation and

August 5, 2014

Say-On-Pay for Smaller Reporting Companies

Effective April 4, 2011, the SEC adopted final rules implementing shareholder advisory votes on executive compensation as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”). Upon enactment smaller reporting companies were given a two-year exemption from the compliance requirements. Smaller reporting companies are defined as entities which, as of the last business day of their second fiscal quarter, have a public float of less than $75 million. Beginning in 2013, that exemption expired and now these smaller reporting companies are required to include say-on-pay voting. Although smaller reporting companies have been subject to the rules for a year now, I still encounter questions from the entities as to their obligations and requirements under the rules.

The say-on-pay rules were implemented by adding Section 14A, which requires companies to conduct a separate shareholder advisory vote to approve the compensation of executives, which pay is disclosed pursuant to Item 402 (the “say-on-pay” vote).

May 6, 2014

Public Company SEC Reporting Requirements

A public company with a class of securities registered under either Section 12 or which is subject to Section 15(d) of the Securities Exchange Act of 1934, as amended (“Exchange Act”) must file reports with the SEC (“Reporting Requirements”). The underlying basis of the Reporting Requirements is to keep shareholders and the markets informed on a regular basis in a transparent manner. Reports filed with the SEC can be viewed by the public on the SEC EDGAR website. The required reports include an annual Form 10-K, quarterly Form 10Q’s and current periodic Form 8-K as well as proxy reports and certain shareholder and affiliate reporting requirements.

A company becomes subject to the Reporting Requirements by filing an

April 15, 2014

SEC Files Proceedings Against 19 S-1 Companies and Suspends Trading on 255 Shell Companies

A. S-1 Proceedings

On February 3, 2014, the SEC initiated administrative proceedings against 19 companies that had filed S-1 registration statements. The 19 registration statements were all filed with an approximate 2-month period around January 2013. Each of the companies claimed to be an exploration-stage entity in the mining business without known reserves, and each claimed they had not yet begun actual mining. The 19 entities used the same attorney, who is the subject of a separate SEC action filed in August 2013 alleging involvement in a pump-and-dump scheme. Each of the entities was incorporated at around the same time using the same registered agent service. The 19 S-1’s read substantially the same.

Importantly, each of the 19 S-1’s lists a separate officer, director and sole shareholder, and each claims that this person is the sole control person. The SEC complains that contrary to the representations in the S-1, a separate single individual is the actual control person behind each

February 4, 2014

Mergers and Acquisitions; Merger Documents Outlined

An Outline Of the Transaction

The Confidentiality Agreement

Generally the first step in an M&A deal is executing a confidentiality agreement and letter of intent. These documents can be combined or separate. If the parties are exchanging information prior to reaching the letter of intent stage of a potential transaction, a confidentiality agreement should be executed first.

In addition to requiring that both parties keep information confidential, a confidentiality agreement sets forth important parameters on the use of information. For instance, a reporting entity may have disclosure obligations in association with the initial negotiations for a transaction, which would need to be exempted from the confidentiality provisions. Moreover, a confidentiality agreement may contain other provisions unrelated to confidentiality such as a prohibition against

November 5, 2013

SEC has Modified Policies on Offerings by Shell Companies

Recently, albeit not officially, the Securities and Exchange Commission (“SEC”) has materially altered its position on offerings by shell companies that are not blank-check companies. In particular, over the past year, numerous shell companies that are not also blank-check companies have completed offerings using an S-1 registration statement and successfully obtained market maker support and a ticker symbol from FINRA and are trading. As recently as 18 months ago, this was not possible.

Rule 419 and Blank-Check Companies

The provisions of Rule 419 apply to every registration statement filed under the Securities Act of 1933, as amended, by a blank-check company. Rule 419 requires that the blank-check company filing such registration statement deposit the securities being offered and proceeds of the offering into

October 1, 2013

SEC Guidance On Social Media And Websites For Company Announcements And Communications- Part II

On April 2, 2013, in response to a Facebook post made by Reed Hastings, CEO of Netflix, the Securities Exchange Commission (“SEC”) issued a report confirming that companies can use social media, such as Facebook and Twitter, to make company announcements in compliance with Regulation Fair Disclosure (Regulation FD) as long as investors are alerted as to which social media outlet is being used by the company. In the report the SEC stated that previously published guidance on the use of Company websites was applicable to the use of social media. Accordingly, in a series of blogs I am reviewing the SEC guidance on the use of company websites. This blog is Part II in the series.

Background

May 3, 2013

SEC Guidance On Social Media And Websites For Company Announcements And Communications- Part I

On April 2, 2013, the Securities Exchange Commission (“SEC”) issued a report confirming that companies can use social media, such as Facebook and Twitter, to make company announcements in compliance with Regulation Fair Disclosure (Regulation FD) as long as investors are alerted as to which social media outlet is being used by the company. The report was issued following an investigation into a Facebook posting made by Reed Hastings, CEO of Netflix. In the report the SEC stated that previously published guidance on the use of Company websites was applicable to the use of social media. Accordingly, a review of the SEC guidance on the use of company websites is in order.

Background

April 25, 2013

SEC Clears Social Media As An Acceptable Form For Company Announcements

On April 2, 2013, the Securities Exchange Commission (“SEC”) issued a report confirming that companies can use social media, such as Facebook and Twitter, to make company announcements in compliance with Regulation Fair Disclosure (Regulation FD) as long as investors are alerted as to which social media outlet is being used by the company. The report was issued following an investigation into a Facebook posting made by Reed Hastings, CEO of Netflix. The SEC declined to pursue an enforcement action against Mr. Hastings.

Regulation FD requires that companies take steps to ensure that material information is disclosed to the general public in a fair and fully accessible manner such that the public as a whole has simultaneous access to the information. Regulation FD is designed to ensure that all investors are on an even playing field in terms of access to material information. Regulation FD ended the era of invitation-only conference calls between company management and a select group

April 10, 2013

The JOBS Act IPO On-Ramp

I’ve written extensively on the Crowdfunding Act, or Title III of the Jobs Act, and much less extensively on the other five titles of the Act. Today’s blog will focus on Title I of the Jobs Act – Reopening American Capital Markets to Emerging Growth Companies. Several industry types have been referring to Title I as the IPO On Ramp and so will I.

The Jobs Act

The JOBS Act created a new category of companies defined as “Emerging Growth Companies” (EGC). An EGC is defined as a company with annual gross revenues of less than $1 billion that first sells equity in a registered offering after December 8, 2011. In addition, an EGC loses its EGC status on the earlier of (i) the last day of the fiscal year in which it exceeds $1 billion in revenues; (ii) the last day of the fiscal year following the fifth year after its IPO; (iii) the date on which it

June 4, 2012

Form 10 Registration Statements

A Form 10 Registration Statement is a registration statement used to register a class of securities pursuant to Section 12(g) of the Securities Exchange Act of 1934 (“Exchange Act”). To explain a Form 10 registration statement, let’s start with what it isn’t. It is not used to register specific securities for sale or re-sale and does not change the transferability of any securities. That is, a Form 10 registration statement does not register a security for the purposes of Section 5[1] of the Securities Act of 1933 (“Securities Act”) . Following the effectiveness of a Form 10 registration statement, restricted securities remain restricted and free trading securities remain free trading.

The Purpose of Form 10 Registration Statements

Now onto what a Form 10 registration is. As indicated above a Form 10 registration statement is used to register a class of securities. Any Company with in excess of $10,000,000 in total assets and 750 or more record shareholders

March 19, 2010

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Form 8-K

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