Exploring Corporate Governance Around the World

By Allison Garrett, Senior Vice President for Academic Affairs at Oklahoma Christian University

Monday, January 01, 2007

Termination of Foreign Private Issuer's Registration

A few days ago, the SEC reproposed amendments to the rules that govern when a foreign private issuer may terminate registration of its equity securities under Section 12(g) of the Securities Act, and its reporting obligations under Section 13(a). See here for the proposed rule. The proposed rule is open for comments.

The changes were first proposed in December of 2005 and the SEC received more than 50 comments regarding the earlier proposal. Many of the comments noted that the SEC's proposal, while a step in the right direction, continued to make it difficult for issuers in whom U.S. investors have very little interest to deregister. The new proposal incorporates suggestions made by several commentators.

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