News & Analysis as of

Securities and Exchange Commission (SEC) Related Parties

BCLP

Time to Get Ready for the 2024 Reporting Season

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As companies look ahead to the upcoming proxy and annual report season, the SEC has generated a number of new items to add to your compliance checklist – in addition to those covered in last year's list. Those items, along...more

Vinson & Elkins LLP

Related Party Transactions Disclosures in SEC Crosshairs Once Again

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The Securities and Exchange Commission (“SEC”) recently brought two enforcement actions against public companies regarding related party transaction (“RPT”) disclosures. The actions against Lyft and Maximus should remind...more

BCLP

Keep Track of Perquisites and Related Person Transactions: Recent Sec Enforcement Actions

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Over the past few years, the SEC has renewed its focus on public company failures to disclose perquisites  and related person transactions. As discussed under “Deeper Dive” below, most of the cases involve companies that...more

Mayer Brown Free Writings + Perspectives

NYSE Conforms Related Party Transaction Definition

On August 26, 2021, the US Securities and Exchange Commission (“SEC”) approved an amendment to Rule 314 of the NYSE Listed Company Manual in connection with the review and approval of related party transactions.  As we...more

BCLP

NYSE Further Revises Definition of Related Party Transactions

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Reverses Position on $120,000 Threshold - On August 19, 2021, the New York Stock Exchange further revised its definition of a “related party transaction” to include the $120,000 quantitative threshold under Item 404 of...more

Goodwin

NYSE Amends Related Party Transaction Approval Requirements

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On August 19, 2021, the New York Stock Exchange amended its rules that require approval of related party transactions for NYSE-listed companies. This amendment, which is effective immediately, modifies an earlier amendment to...more

BCLP

NYSE Revises Related Party Transaction Approval Rule

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Companies listed on the New York Stock Exchange should review their policies on related party transactions and related processes to confirm they are consistent with recent revisions to the applicable NYSE rules. ...more

Alston & Bird

SEC Approves NYSE Amendments to Related Party Transactions Policies

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Our Securities Group investigates how NYSE-listed companies will need to adjust their approval processes for related party transactions in light of amendments to the NYSE Listed Company Manual....more

Wiley Rein LLP

Prior Acts Exclusion Bars Coverage for Shareholder Suits Based on Failure to Disclose Related-Party Transactions to SEC

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The United States Court of Appeals for the Eighth Circuit, applying Minnesota law, affirmed a trial court’s decision that the prior acts exclusion in a directors and officers liability policy barred coverage for shareholder...more

Stinson - Corporate & Securities Law Blog

SEC Charges Contracted Investor Relations Person with Disclosure Violation

Shawn Severson is the owner and manager of EnergyTech Investor, LLC.  Between August 2015 and March 2018, UQM Technologies, Inc., or UQM, retained Severson, through EnergyTech Investor and another firm, to provide investor...more

Latham & Watkins LLP

3 Steps FPI Directors Can Take to Oversee Related-Party Transactions

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Developing a process for foreign private issuers to pursue frequently beneficial business opportunities. Investors and regulators in the current corporate governance environment have increased their focus on companies’...more

Mintz - Securities Litigation Viewpoints

SEC’s Charges Provide Support for Class Plaintiffs’ Allegations in the Ocwen Securities Litigation

A December 22, 2015 decision of the U.S. District Court of the Southern District of Florida in In re Ocwen Financial Corporation Securities Litigation illustrates the impact that an investigation and order of the Securities...more

Dorsey & Whitney LLP

SEC, Adviser Settle Proceeding Centered on Conflicts

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Conflicts of interest and a failure to disclose related party transactions continue to be key themes in Commission actions involving investment advisers. Undisclosed conflicts, as well as a failure to disclose related party...more

Cooley LLP

Blog: AS 18 Creates A New Buzz About Related-Party Transactions For The Audit Of 2015

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As discussed in this PubCo post, last year the PCAOB adopted Auditing Standard No. 18, Related Parties, addressing related-party transactions, significant unusual transactions and transactions with executive officers. (See...more

Cooley LLP

Blog: SEC’s New “Investor Advocate” Takes A Stand On NYSE Proposed Rule Change

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Today, the new Investor Advocate, Rick Fleming, issued a statement regarding his “First Official Recommendation” to the SEC. What was that recommendation? He recommended that the SEC disapprove the NYSE’s proposed rule...more

Dorsey & Whitney LLP

SEC Files Settled Action Tied To Restatement

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The SEC filed another action centered on a restatement resulting from improper accounting and internal controls. In this instance the firm lacked procedures for dealing with related party transactions despite contrary...more

Dorsey & Whitney LLP

Do You Know Where Your Manually Signed Signature Pages Are?

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On September 8, 2015, the Securities and Exchange Commission settled an enforcement action against a company for, among other violations, a failure to manually sign and retain signature pages, as required by Rule 302 of...more

Dorsey & Whitney LLP

This Week In Securities Litigation

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The Commission brought two FCPA cases this week, one of which was in conjunction with the DOJ. Both centered on the payments for gifts and travel in China. In addition, the SEC filed three manipulation cases, an action...more

Parker Poe Adams & Bernstein LLP

Governance Responses to the PCAOB’s New Related Party Rule

Last week the SEC approved new PCAOB rules regarding: - Company relationships and transactions with related parties, - “Significant unusual transactions”, and - Company relationships and transactions with its...more

Blank Rome LLP

SEC Approves PCAOB’s Auditing Standard No. 18, Related Parties

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On October 21, 2014, the SEC approved Auditing Standard No. 18, Related Parties of the Public Company Accounting Oversight Board (PCAOB), as well as amendments to certain PCAOB auditing standards regarding significant unusual...more

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