CONTRIBUTED BY
Andrew Ledbetter
andrew.ledbetter@dlapiper.com

The House of Representatives overwhelmingly passed two bills designed to improve capital formation, one addressing the 500-shareholder threshold for SEC registration and one addressing offerings under Regulation A.

 500-Shareholder SEC Registration Threshold

Sections 12(g) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) generally requires companies with at least $10 million dollars in total assets and 500 shareholders to file reports with the SEC.  While the $10 million asset threshold has increased from $1 million over the years, the 500 shareholder threshold has not moved.  House of Representative bill H.R. 1965 would increase the shareholder threshold for SEC registration from 500 to 2,000 as to banks and bank holding companies.  The bill was approved in the House of Representative by a vote of 420 to 2.Continue Reading Overwhelming House Approval of Capital Formation Reforms