Tag Archives: SEC

SEC Suspends Trading in 255 “Shell” Companies

Today, the Securities and Exchange Commission (SEC) issued a Press Release announcing that as a result of its micro-cap fraud-fighting initiative they named “Operation Shell-Expel”, they suspended trading in 255 dormant shell companies in 26 states and 2 foreign countries, … Continue reading

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SEC issues Proposed Rules on Crowdfunding.

Today, the Securities and Exchange Commission voted unanimously to propose the long-awaited Crowdfunding rules under the JOBS Act. Under the Proposed rules: A private company would be able to raise a maximum aggregate amount of $1 million through crowdfunding offerings … Continue reading

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Crowdfunding Basics

The JOBS Act was passed in April 2012 and in addition to General Solicitation, the JOBS Act paved the way for the Crowdfunding exemption. Crowdfunding is best described as  the process by which capital is raised for a project, venture, … Continue reading

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SEC Lifts Ban on General Solicitation

Today, the SEC voted 4 to 1 in favor of implementing section 201(a) of the JOBS Act which lifts the ban on general solicitation, permitting startups, venture capitalists and hedge funds to openly advertise that they are raising money.  This … Continue reading

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SEC Sets July 10 Hearing for General Solicitation Rules Under JOBS Act

The SEC seems to making an attempt to move forward with the rules under the Jumpstart Our Business Startups Act. (JOBS Act). The SEC announced that in an Open Meeting scheduled for tomorrow, July 10, they will consider: whether to … Continue reading

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The Small Business Brokerage Act Summary

On June 6, 2013, H.R. 2274, the Small Business Mergers, Acquisitions, Sales and Brokerage Simplification Act of 2013, (“Small Business Brokerage Act”) was introduced to the House of Representatives.  The Bill would amend the Securities and Exchange Act of 1934 … Continue reading

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General Solicitation, Where Are You?

The Jumpstart our Business Startups Act (JOBS Act) was signed into law on April 5, 2012 and was to (among other things) allow businesses to generally solicit investors for certain securities offerings as well as create guidelines for crowdfunding.  The Jobs Act  required the SEC … Continue reading

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SEC Not Liable for Madoff

On Wednesday April 10, the Second U.S. Circuit Court of Appeals upheld a lower court’s rejection of claims by a number of former Madoff clients who argued “the SEC negligently failed to adequately investigate Bernard Madoff despite numerous warnings.” The … Continue reading

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SEC “Likes” Social Media; Conditionally

On April 2, 2013, the SEC issued guidance regarding a company’s use of social media to disclose information or make announcements. The SEC investigated whether Netflix, Inc. and its CEO, Reed Hastings violated Securities laws when Hastings used his personal … Continue reading

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Severance Plans and Arrangements

With the $56 million Golden Parachute for Heinz CEO, and similar packages for the executives of companies like GE, Exxon, Mobil Corp., AT&T and Home Depot, Inc., being in the news recently, a lot of focus has been on these … Continue reading

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