Micro cap and small cap companies operating without in-house counsel or internal legal departments must be vigilant in navigating the challenges of ensuring compliance with Section 16 of the Exchange Act of 1934 (the “Act”). 

In their recent article for MicroCap Review, Pryor Cashman partner Eric Hellige – chair of the firm’s Corporate Group – and corporate associate Francesca Djerejian outline best practices smaller companies can adopt to ensure reportable transactions by “insiders” are properly disclosed as mandated by the Act.

Complying with Section 16 of the Exchange Act

Specifically, Hellige and Djerejian address:

-  Who is classified as an insider under Section 16, and is therefore obligated to report;

-  The various forms and documentation insiders must file;

-  The types of transactions that trigger Section 16 reporting obligations;

-  Consequences of violating reporting requirements;

-  Which transactions are prohibited under the “short swing profits” rule; and

-  How to develop or bolster best practices to ensure Section 16 compliance.

To read the full article, please visit here.

More About Pryor Cashman’s Corporate Group

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