Welcome to SEC Roundup, a bimonthly video collection by former Securities and Alternate Fee senior trial counsels Nick Morgan and Tom Zaccaro, founders of the nonprofit advocacy group Investor Alternative Advocates Community.
A dealer who holds shares in a personal firm on behalf of shoppers, or a fund that invests in a single, counts as just one shareholder within the firm.
The SEC is contemplating a rule that might look via brokers and funds so that every shopper or investor would depend as a shareholder.
John Gulliver, govt director of the Committee on Capital Markets Regulation, talks with Morgan and Zaccaro about why this could imply many personal corporations would exceed the utmost of two,000 shareholders for a personal firm and should register as a public firm.
Such an modification to the definition of “held of document” for functions of Part 12(g) of the Securities Alternate Act would have big implications for personal corporations and the funds and brokers that put money into these personal corporations.
See the video above for the dialogue with Gulliver.
