What is the Section 83(b) Election Process? The Section 83(b) Election Process can be a little tricky, so let’s start at the beginning. Under Section 83(b) of the Internal Revenue Code (“Section 83(b)”), a taxpayer who receives certain property subject to vesting as compensation for services (for example, a restricted stock award granted by the…
The SEC Proposed Changes to the Definition of a Smaller Reporting Company On June 27, 2016, the SEC issued proposed rule amendments that would increase the financial thresholds in the definition of smaller reporting company as used in the SEC’s rules and regulations. If adopted, the proposal would expand the number of registrants that qualify…
Depending on who you ask, the U.S. Securities and Exchange Commission is either a trigger-happy agency looking to bring the hammer down on business owners or a toothless entity with little to no enforcement power. Of course, as most corporate securities lawyers will tell you, the truth lies somewhere in the middle. Unfortunately, all too…
Federal corporate securities laws require that businesses disclose information periodically regarding specific financial statements. Although these statements ask for straightforward information about each company’s financial state of being, it’s common for business owners to be confused by the way in which the Security Exchange Commission (SEC) asks for this information. If your business needs to…
This week, VentureBeat takes a closer look at the state of the IPO market, which has some investors skittish. With floating anxiety over falling oil prices and the opaque Chinese economy, a growing chorus of naysayers has questioned whether 2016 is the right time to go public. Now, one highly respected venture capitalist says those…
La mayoría de la gente piensa “OPI” cuando se enteran de que una empresa va pública. [1] Una alternativa más barata y más rápida de la salida a bolsa tradicional, sin embargo, es a través de una fusión inversa. En una fusión inversa, “Los accionistas de la empresa privada intercambian sus acciones por una gran…
Martin Shkreli has been called many things since he became a household name: a “pharma bro,” a “capitalist cartoon villain,” and an assortment of four-letter words. The young CEO became famous after he drastically raised the price of a life-saving AIDS medication. But while many critics called his behavior unethical, corporate and securities lawyers know…
How a Corporation Issues Additional Shares As securities attorneys, we have assisted many corporations to raise capital through both a private and public offering of shares. In our experience, this is how a corporation issues additional shares to their employees and/or to the public market. A corporation will most likely decide to issue additional shares…
Corporate Law is not a joke. Learn from Volkswagen’s mistakes and chose the right direction at the start. According to the BBC, the 2015 Volkswagen emissions scandal is not only the “most expensive act of stupidity in the history of the car industry,” but could also end up being “one of the longest legal nightmares…
SEC Proposes Rules to Enhance Transparency and Oversight of Alternative Trading Systems FOR IMMEDIATE RELEASE 2015-261 Washington D.C., Nov. 18, 2015 —The Securities and Exchange Commission today announced it has voted to propose rules to enhance operational transparency and regulatory oversight of alternative trading systems (ATSs) that trade stocks listed on a national securities exchange…
