The SEC has calendared an Open Commission Meeting for this Wednesday during which it will consider whether to issue a policy statement addressing the presence of a provision requiring arbitration of investor claims arising under the Federal securities laws and its impact on decisions whether to accelerate the effectiveness of a registration statement.
If the SEC does adopt such a policy, it would reverse a decades-old policy that prohibits public companies from having such a bylaw. It’s unclear whether institutional investors and proxy advisors have an appetite for companies to start having them, but we shall see.
Another agenda item for Wednesday’s Open Commission Meeting: whether to amend the SEC’s Rules of Practice relating to procedures governing Commission review of staff actions made pursuant to delegated authority in connection with the determination of the effectiveness of a registration statement or the qualification of a Regulation A offering.
Authored by
Broc Romanek