Lawyer Article
SEC Adopts Rules Facilitating Internet Delivery Of Proxy Materials And Proposes Required Compliance
February 13, 2007
The SEC recently adopted rules that permit issuers and other persons to furnish proxy materials to shareholders by posting them on an Internet website and supplying a notice to shareholders regarding the availability of such materials. The new "notice and access" alternative is intended to allow issuers and other soliciting persons to establish procedures that will promote use of the Internet as a reliable and cost-effective means of making proxy materials available to shareholders.
Under the new rules, an issuer may satisfy its obligation under the SEC’s proxy rules to furnish proxy materials to shareholders by posting the materials on a publicly-accessible Internet website (other than the SEC's EDGAR website) and sending a Notice of Internet Availability of Proxy Materials to shareholders indicating that the proxy materials are available and explaining how to access those materials.
Compliance with the new rules is permitted for meetings beginning August 10, 2007, and issuers may begin sending Notices to shareholders on or after July 1, 2007. In a companion release, the SEC proposed rules that would require compliance with the notice and access model starting in 2008 for large accelerated filers (other than investment companies) and starting in 2009 for all other issuers.
Follow this link to our client alert describing the new SEC rules.
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