Client Alert
SEC Adopts New Exchange Act Registration Exemptions For Compensatory Stock Options
December 11, 2007
The SEC recently adopted two exemptions from the registration requirements of the Securities Exchange Act of 1934 for certain compensatory stock options. The new rules, which are currently effective, will benefit large private companies that grant options to 500 or more persons and public companies that have registered common stock underlying options on Form S-8. The new exemptions do not affect the registration requirements applicable to private and public companies under the Securities Act of 1933 or the application of the Exchange Act registration requirements to securities underlying options. Private companies hoping to rely on the exemption may need to amend their stock plans and related documents in order to meet the requirements of the new rule.
Click here to read a copy of our client alert regarding the new SEC rules.
If you have any questions regarding this Client Alert, please contact either the Womble Carlyle attorney with whom you usually work or one of our Corporate and Securities attorneys listed on the following webpage: WCSR Corporate & Securities Lawyers.
Womble Carlyle client alerts are intended to provide general information about significant legal developments and should not be construed as legal advice on any specific facts and circumstances, nor should they be construed as advertisements for legal services.
IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice within this client alert is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in a client alert.
