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Proxy Statement Adequately Described Purpose of Equity Incentive Plan

In Pascal v. Czerwinski et al, the Delaware Court of Chancery considered whether disclosures in Columbia Financial’s 2019 proxy statement related to the adoption of an equity incentive plan, or EIP, were adequate. ...more

SEC Adopts Final Rules for the Disclosure of Payments by Resource Extraction Issuers

The SEC adopted final rules that will require resource extraction issuers that are required to file reports under Section 13 or 15(d) of the Securities Exchange Act of 1934 to disclose payments made to the U.S. federal...more

Exceptions to Beneficial Ownership Disclosure of Private Companies in Corporate Transparency Act

The pending National Defense Authorization Act (NDAA) for Fiscal Year 2021 (H.R. 6395) will require many private companies to confidentially report the beneficial ownership of their common stock in many circumstances....more

Pending Defense Bill to Require Reporting of Beneficial Ownership of U.S. Private Companies

The National Defense Authorization Act (NDAA) for Fiscal Year 2021 (H.R. 6395) conference report that passed the Senate will require private companies to report the beneficial ownership of their common stock in many...more

Form for an Officer/Director to Attest to an Electronic Signature on an SEC Filing

The SEC has adopted final rules regarding electronic signatures with respect to Regulation S-T Rule 302. New Rule 302(b)(2) of Regulation S-T provides that, before a signatory initially uses an electronic signature to sign...more

SEC Amends Rules for MD&A and other Financial Disclosures

The SEC adopted amendments intended to modernize, simplify and enhance certain financial disclosure requirements in Regulation S-K, including rules related to MD&A....more

SEC Commissioners Explain Dissent from Enforcement Action Related to 10b5-1 Plan

We previously discussed an SEC enforcement action against Andeavor LLC for controls violations relating to a stock buyback plan it implemented while it was in discussion to be acquired by Marathon Petroleum Corp. in 2018....more

SEC Harmonizes and Improves Exempt Offering Framework

The SEC adopted final rules which the SEC believes harmonizes, simplifies, and improves the complex exempt offering framework....more

PCAOB Issues Report on Initial Impact of CAM Requirements

The PCAOB released an interim analysis report and two accompanying white papers providing the PCAOB’s perspective on the initial impact of critical audit matter (CAM) requirements and insights learned from stakeholders....more

SEC Charges Company for Implementing Stock Buyback Plan Before Acquisition Negotiations Resumed

The SEC announced settled charges against Andeavor LLC for controls violations relating to a stock buyback plan it implemented while it was in discussions to be acquired by Marathon Petroleum Corp. in 2018. Andeavor agreed to...more

ISS Launches Open Comment Period for 2021 ISS Benchmark Voting Policy Changes

ISS announced the launch of its annual benchmark voting policy comment period. ISS has made available for public comment a number of proposed changes to ISS’ benchmark voting policies for 2021. Key proposed changes for the...more

SEC Proposes Expanded Exemption for “Finders”

At an open meeting of the Securities and Exchange Commission on October 7th, the Commission approved issuance of a proposed conditional exemptive order that would allow “finders” to engage with accredited investors in...more

Preliminary Planning for the 2021 Proxy Season

Our preliminary list of important planning considerations for the 2021 proxy season is set forth below. Directors’ and Officers’ Questionnaires; Committee Charters - We have identified only a few possible changes to...more

DOL Proposes Rule on Employee Benefit Plan Proxy Voting and Exercises of Other Shareholder Rights

The U.S. Department of Labor yesterday made available a proposed rule that would address the application of the prudence and exclusive purpose duties under the Employee Retirement Income Security Act (ERISA) with respect to...more

Changes to Subscription Agreements as a Result of Revised Accredited Investor Definition

As we noted here, the SEC has expanded the definition of accredited investor. This means many forms of subscription agreements may need to be updated. No two agreements are exactly alike, but we have updated one form we use....more

SEC Adopts Rule Amendments to Modernize Disclosures of Business, Legal Proceedings, and Risk Factors

The SEC adopted amendments to modernize the description of business, legal proceedings, and risk factor disclosures that registrants are required to make pursuant to Regulation S-K. These disclosure items have not undergone...more

SEC Rulemaking Expands Accredited Investor Definition

On August 26, 2020, the Securities and Exchange Commission adopted amendments and issued a related order to expand the definition of “accredited investor” under Rule 501(a) of the Securities Act to include natural persons...more

Court Examines Intended Third Party Beneficiaries of Indemnification Provision

In CHS/Community Health Systems, Inc. et al v. Steward Health Care System LLC, the Delaware Court of Chancery examined who was an intended third-party beneficiary of an indemnification provision in an Asset Purchase...more

FASB Considering Revising Interim Reporting Requirements

At its August 29, 2020 Board meeting, FASB Board discussed what changes should be made to the disclosure requirements for interim reporting....more

Fee-Shifting Provision in Stockholders Agreement Does Not Violate Delaware Law

Manti Holdings, LLC, et al. v. Authentix Acquisition Company, Inc. considered whether a “loser pays” fee-shifting provision in a stockholders’ agreement violated Delaware law.  In 2008, the Petitioners had all held stock in a...more

ISS Launches 2021 Annual Policy Survey

ISS has launched its 2021 Annual Policy Survey.  Generally, the survey is the first step in ISS’ annual benchmark policy development process....more

SEC Adopts Final Rules Regarding Proxy Advisors

Proxy voting advice businesses, or PVABs, have come to play an important role in the proxy voting process by providing an array of voting services that can help investment advisers and institutional investor clients manage...more

Homefed: MFW Conditions Not Timely Implemented

In Re Homefed Corporation Stockholder Litigation arose from a transaction in which Jefferies Financial Group Inc., the 70% stockholder of HomeFed Corporation, acquired the rest of the shares of the company in July 2019 by...more

Delaware Supreme Court Interprets Books and Records Provision of Limited Partnership Agreement

In Murfey v WHC Ventures, LLC the Delaware Supreme Court interpreted the books and records provisions of three limited partnership agreements.  The plaintiff wanted Schedule K-1s attached to the partnerships’ tax returns. ...more

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