U.S and Trans-Border Securities Regulation

Recommendations

Info

U.S and Trans-Border Securities Regulation Boston University School of Law Executive LL.M. in International Business Law Session 8 – July 30, 2013 (c) 2013 Michael K. Krebs All Rights Reserved
Session 8 Agenda Part 1 Woe to be an insider of a reporting company Part 2 Proxy Statement Regulation Part 3 Regulation of Foreign Private Issuers under Securities Act and Exchange Act Part 4 Comparative differences between U.S. securities law regime and that of UK, EU and Hong Kong (c) 2013 Michael K. Krebs All Rights Reserved
Page 1 and 2:
U.S and Trans-Border Securities Reg
Page 3 and 4:
Page 5 and 6:
Overarching concepts 1) “Issuer
Page 7 and 8:
Interstate Commerce Within U.S.? In
Page 9 and 10:
Interstate Commerce (cont’d) Simi
Page 11 and 12:
Interstate Commerce (cont’d) Reg.
Page 13 and 14:
Interstate Commerce (cont’d) F3 o
Page 15 and 16:
Materiality (cont’d) Basic v. Lev
Page 17 and 18:
Materiality (cont’d) Matrixx Init
Page 19 and 20:
GAAP (vs. IFRS) IFRS - “Internati
Page 21 and 22:
Securities Act Overview How would y
Page 23 and 24:
Securities Act Overview (cont’d)
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Section 5 §5(c) It is unlawful …
Page 31 and 32:
Stocks Key Components of §2(a)(1)
Page 33 and 34:
Section 4 §4 exempts some transact
Page 35 and 36:
What is a “Security”? Very broa
Page 37 and 38:
Section 2(a) of the ’33 Act §2(a
Page 39 and 40:
Promissory Notes Many extensions of
Page 41 and 42:
Reves v. Ernst & Young, 494 U.S. 56
Page 43 and 44:
What is a “Security”? Loan Part
Page 45 and 46:
Page 47 and 48:
Page 49 and 50:
Page 51 and 52:
Howey Test for Investment Contracts
Page 53 and 54:
Howey Test - Applied: SEC v. ETS Pa
Page 55 and 56:
Howey Test - Applied: SEC v. Edward
Page 57 and 58:
The Reves Test compared to the Howe
Page 59 and 60:
Partnership and LLC Interests Invol
Page 61 and 62:
What is a “Security”? Common St
Page 63 and 64:
Stock in Closely Held Businesses P
Page 65 and 66:
Guarantees as Securities §2(a)1-
Page 67 and 68:
Dodd-Frank Act (July 2010) Changes
Page 69 and 70:
Securities exempt from §5 registra
Page 71 and 72:
Government Securities §3(a)2 Impor
Page 73 and 74:
Commercial Paper -- §3(a)3 “Any
Page 75 and 76:
Exempt Bank Securities (cont’d) T
Page 77 and 78:
Limits on Bank Securities Exemption
Page 79 and 80:
Private Placements §4(2), §3(b) S
Page 81 and 82:
Basic Principle Underlying the Secu
Page 83 and 84:
What is a “sale”? § 2(a)(3) -"
Page 85 and 86:
What is a “sale”? Special Situa
Page 87 and 88:
What is a “sale”? Special Situa
Page 89 and 90:
Implications of SEC registration? W
Page 91 and 92:
Lessons from Facebook IPO 1. Prepar
Page 93 and 94:
Lessons from Facebook IPO 2. Potent
Page 95 and 96:
Exempt Transactions How do “start
Page 97 and 98:
Exempt Transactions Private placem
Page 99 and 100:
Our Focus in Session 2 Private pla
Page 101 and 102:
Session 2 - Exempt Transactions Fun
Page 103 and 104:
4(2) - Private Placements transacti
Page 105 and 106:
4(2) Analysis 1953 Ralston Purina S
Page 107 and 108:
Private Placements - Regulation D 1
Page 109 and 110:
Regulation D - Important JOBS Act C
Page 111 and 112:
Private Placements - Regulation D H
Page 113 and 114:
Private Placements - “Crowdfundin
Page 115 and 116:
Crowdfunding Portal A funding porta
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Sample Restrictive Legend THE SHARE
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Session 2 - Exempt Transactions Mer
Page 135 and 136:
Session 2 - Exempt Transactions Mer
Page 137 and 138:
Session 2 - Exempt Transactions Eme
Page 139 and 140:
Session 2 - Exempt Transactions Eme
Page 141 and 142:
Intrastate Offerings - and Rule 147
Page 143 and 144:
Rule 701 Rule 701 (Benefit Plans/C
Page 145 and 146:
Rule 701 (cont’d) Value of optio
Page 147 and 148:
Session 2 - Private Placements Goog
Page 149 and 150:
Session 2 - Private Placements Goog
Page 151 and 152:
Page 153 and 154:
Session 3 Agenda Planning for an In
Page 155 and 156:
Planning for an IPO Restrictions on
Page 157 and 158:
Section 5 Rubric 5(c) It is unlawfu
Page 159 and 160:
Session 3 - What Can Be Done During
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
How are the rules different for a W
Page 179 and 180:
Page 181 and 182:
WSKI S-3 Eligibility General Instru
Page 183 and 184:
WSKI S-3 Eligibility (cont’d) 5.
Page 185 and 186:
Page 187 and 188:
Other Categories of Issuers under S
Page 189 and 190:
Emerging Growth Companies An issuer
Page 191 and 192:
What is a Foreign Private Issuer? A
Page 193 and 194:
Other Categories of Issuers under S
Page 195 and 196:
How are gun jumping rules different
Page 197 and 198:
Page 199 and 200:
Page 201 and 202:
Page 203 and 204:
The “Elephant in the Corner” -
Page 205 and 206:
Rescission rights under Section 12(
Page 207 and 208:
Strict liability under Section 11 S
Page 209 and 210:
Section 11 Plaintiffs Who may sue u
Page 211 and 212:
Section 11 Defendants Scope of join
Page 213 and 214:
Section 11 Defenses (cont’d) Out
Page 215 and 216:
Section 11 Due Diligence Defense Wh
Page 217 and 218:
BarChris Section 11 Due Diligence D
Page 219 and 220:
Section 11 Due Diligence Defense (c
Page 221 and 222:
Page 223 and 224:
Page 225 and 226:
What about Section 12(a)(2)? Establ
Page 227 and 228:
Was Gustafson v. Alloyd Co. correct
Page 229 and 230:
When might control persons be vicar
Page 231 and 232:
“Aiding and Abetting” (cont’d
Page 233 and 234:
Page 235 and 236:
Page 237 and 238:
Indemnification or Contribution und
Page 239 and 240:
Criminal Liability Under the Securi
Page 241 and 242:
Litigation concerning violations of
Page 243 and 244:
IPO Securities Litigation (cont’d
Page 245 and 246:
IPO Securities Litigation (cont’d
Page 247 and 248:
IPO Securities Litigation Refusal t
Page 249 and 250:
IPO Securities Litigation 2009 Sett
Page 251 and 252:
Related Antitrust Case Contemporane
Page 253 and 254:
Alleged Antitrust Law Violations S
Page 255 and 256:
U.S. Supreme Court Rules Securities
Page 257 and 258:
Page 259 and 260:
Session 4 Agenda How does a company
Page 261 and 262:
Basic Principles Underlying the Sec
Page 263 and 264:
Understanding SEC Disclosure Regime
Page 265 and 266:
Page 267 and 268:
Page 269 and 270:
Session 4 Life Cycle of a Typical I
Page 271 and 272:
Page 273 and 274:
Page 275 and 276:
Page 277 and 278:
Page 279 and 280:
Page 281 and 282:
Page 283 and 284:
Session 4 Life Cycle of A123 System
Page 285 and 286:
Timeline (cont’d) Session 4 Life
Page 287 and 288:
Page 289 and 290:
Session 4 - Understanding SEC Discl
Page 291 and 292:
Session 4 -Understanding SEC Disclo
Page 293 and 294:
Page 295 and 296:
Page 297 and 298:
SEC Regulation S-K Reg. S-K, Rule 1
Page 299 and 300:
Don’t Forget Regulation C! For ex
Page 301 and 302:
What did Facebook Disclose? USE OF
Page 303 and 304:
What did bluebird bio Disclose? USE
Page 305 and 306:
Page 307 and 308:
What did LinkedIn Disclose? LINKEDI
Page 309 and 310:
Page 311 and 312:
luebird bio Disclosure regarding Em
Page 313 and 314:
What did Graña y Montero Disclose?
Page 315 and 316:
Another Overarching Principle - Int
Page 317 and 318:
“Three Amigos” of Integrated Di
Page 319 and 320:
Primary ’33 Act Examples of Incor
Page 321 and 322:
What is meant by the phrase “plai
Page 323 and 324:
“Plain English” (cont’d) In d
Page 325 and 326:
Page 327 and 328:
Page 329 and 330:
What did Grana y Montero Corp. Do?
Page 331 and 332:
Page 333 and 334:
A Few Words About “Free Writing
Page 335 and 336:
“Free Writing” (cont’d) In c
Page 337 and 338:
Page 339 and 340:
Page 341 and 342:
After the Road Show . . . Do underw
Page 343 and 344:
After the Road Show . . . The “Gr
Page 345 and 346:
Page 347 and 348:
When/how must a prospectus be deliv
Page 349 and 350:
Page 351 and 352:
Page 353 and 354:
Page 355 and 356:
Session 5 Agenda How does a company
Page 357 and 358:
Session 5 - Understanding SEC Regis
Page 359 and 360:
Review of S-3 Eligibility Why does
Page 361 and 362:
S-3 Eligibility (cont’d) 3. Regis
Page 363 and 364:
S-3 Eligibility (cont’d) Current
Page 365 and 366:
Understanding SEC Registration Regi
Page 367 and 368:
Objectives of Integrated Disclosure
Page 369 and 370:
Review of Regulation S-K Reg. S-K,
Page 371 and 372:
Objectives of Integrated Disclosure
Page 373 and 374:
Primary ’33 Act Examples of Incor
Page 375 and 376:
10-K Disclosure: Geography Part I:
Page 377 and 378:
10-K Disclosure: MD&A Objective of
Page 379 and 380:
Page 381 and 382:
Page 383 and 384:
Session 5 - Understanding SEC Regis
Page 385 and 386:
Page 387 and 388:
Shelf Registrations and Due Diligen
Page 389 and 390:
Page 391 and 392:
Page 393 and 394:
Page 395 and 396:
Page 397 and 398:
Page 399 and 400:
A Few Words About the Automatic She
Page 401 and 402:
Page 403 and 404:
“Registered Direct Offering” A
Page 405 and 406:
Advantages of a “registered direc
Page 407 and 408:
“Confidentially Marketed Public O
Page 409 and 410:
Elements of CMPOs (cont’d) Confid
Page 411 and 412:
Page 413 and 414:
Elements of an “at the Market Off
Page 415 and 416:
Elements of an “at the Market Off
Page 417 and 418:
Page 419 and 420:
Core Principles (cont’d) 4. Discl
Page 421 and 422:
Core Principles (cont’d) 7. Issue
Page 423 and 424:
Page 425 and 426:
Resale of Securities • How do inv
Page 427 and 428:
Exempt Transactions - Key Principle
Page 429 and 430:
Session 6 - Resale of Securities St
Page 431 and 432:
Primary Ordinary Course Trading Exe
Page 433 and 434:
Pivotal Role of “Underwriter” C
Page 435 and 436:
Resale of Securities How do investo
Page 437 and 438:
Page 439 and 440:
Resale of Securities Rule 144 - “
Page 441 and 442:
Resale of Securities Rule 144(a)(3)
Page 443 and 444:
Page 445 and 446:
Page 447 and 448:
Who are Control Persons? Control Pe
Page 449 and 450:
Control Persons/Affiliates Rules of
Page 451 and 452:
Resale of Securities Rule 144 - Eff
Page 453 and 454:
Session 6 - Resale of Securities Ru
Page 455 and 456:
Session 6 - Resale of Securities Ba
Page 457 and 458:
Session 6 - Resale of Securities Ba
Page 459 and 460:
Resale of Securities What if Rule 1
Page 461 and 462:
Resale of Securities Rule 144 - “
Page 463 and 464:
Page 465 and 466:
Page 467 and 468:
Page 469 and 470:
Session 6 - Resales of Securities S
Page 471 and 472:
Resale of Securities May Rule 144 b
Page 473 and 474:
Session 6 - Exempt Transactions Stu
Page 475 and 476:
Page 477 and 478:
Page 479 and 480:
Session 6 - Resale of Securities So
Page 481 and 482:
Page 483 and 484:
Page 485 and 486:
Page 487 and 488:
Resale of Securities Are there spec
Page 489 and 490:
Resale of Securities Rule 144(a)(3)
Page 491 and 492:
Page 493 and 494:
Page 495 and 496:
Page 497 and 498:
Session 6 Agenda Part 1 How do inve
Page 499 and 500:
Page 501 and 502:
Session 6 (Part 2) - Private Placem
Page 503 and 504:
PIPE—Private Investment in Public
Page 505 and 506:
PIPE—Private Investment in Public
Page 507 and 508:
Page 509 and 510:
Page 511 and 512:
Page 513 and 514:
Page 515 and 516:
Session 6 (Part 2) - Reg. S Study P
Page 517 and 518:
Session 6 (Part 2) - Reg. S Regulat
Page 519 and 520:
Page 521 and 522:
Page 523 and 524:
Regulation S - Rule 903(a): Reg. S
Page 525 and 526:
Reg. S Regulation S - Rules 904 and
Page 527 and 528:
Page 529 and 530:
Session 6 (Part 2) - Reg. S Study P
Page 531 and 532:
Note about JOBS Act and Foreign Pri
Page 533 and 534:
Page 535 and 536:
Page 537 and 538:
Page 539 and 540:
Page 541 and 542:
Page 543 and 544:
Session 6 - Exempt Transactions Stu
Page 545 and 546:
Page 547 and 548:
Page 549 and 550:
Page 551 and 552:
Same facts as 6.16 Session 6 (Part
Page 553 and 554:
Page 555 and 556:
Registration and Reporting Under Se
Page 557 and 558:
Securities Exchange Act Overview (c
Page 559 and 560:
Securities Exchange Act Overview (c
Page 561 and 562:
Page 563 and 564:
Session 7 - Registration and Report
Page 565 and 566:
Page 567 and 568:
A few words about “holders of rec
Page 569 and 570:
A few words about “holders of rec
Page 571 and 572:
JOBS Act Change: Holder of Record T
Page 573 and 574:
JOBS Act Change: “Holder of Recor
Page 575 and 576:
Page 577 and 578:
Page 579 and 580:
Page 581 and 582:
Page 583 and 584:
Page 585 and 586:
Page 587 and 588:
Page 589 and 590:
Page 591 and 592:
Page 593 and 594:
Page 595 and 596:
Page 597 and 598:
Page 599 and 600:
Page 601 and 602:
Page 603 and 604:
Registration and Reporting EDGAR (C
Page 605 and 606:
Page 607 and 608:
Page 609 and 610:
Page 611 and 612:
Page 613 and 614:
Page 615 and 616:
Page 617 and 618:
Page 619 and 620:
Page 621 and 622:
Page 623 and 624:
Page 625 and 626:
Page 627 and 628:
Page 629 and 630:
Page 631 and 632:
Page 633 and 634:
Page 635 and 636:
Page 637 and 638:
Page 639 and 640:
Page 641 and 642:
Origins of Sarbanes-Oxley Act Inten
Page 643 and 644:
Origins of Sarbanes-Oxley Act (cont
Page 645 and 646:
Origins of Sarbanes-Oxley Act (cont
Page 647 and 648:
Impact of Sarbanes-Oxley Certificat
Page 649 and 650:
CEO/CFO Certifications - Penalties
Page 651 and 652:
Impact of Sarbanes-Oxley (cont’d)
Page 653 and 654:
Impact of Sarbanes-Oxley (cont’d)
Page 655 and 656:
Page 657 and 658:
Page 659 and 660:
Page 661 and 662:
Page 663 and 664:
Page 665 and 666:
Page 667 and 668:
Foreign Corrupt Practices Act Enact
Page 669 and 670:
Foreign Corrupt Practices Act (cont
Page 671 and 672:
Page 673 and 674:
Page 675 and 676:
Page 677 and 678:
Page 679 and 680:
Reg. FD Overview (cont’d) Reg. FD
Page 681 and 682:
Reg. FD Overview (cont’d) Example
Page 683 and 684:
Reg. FD Overview (cont’d) 3. Requ
Page 685 and 686:
Reg. FD Overview (cont’d) 4. Exce
Page 687 and 688:
Reg. FD Overview (cont’d) Example
Page 689 and 690:
Reg. FD Compliance Programs Element
Page 691 and 692:
Reg. FD Compliance Programs 3. Diss
Page 693 and 694:
Reg. FD Enforcement Who may bring a
Page 695 and 696:
Reg. FD Enforcement SEC has been vi
Page 697 and 698:
Reg. FD Enforcement - Siebel Case S
Page 699 and 700:
Reg. FD Enforcement - Siebel Case C
Page 701 and 702:
Attorney Conduct Rules Under Federa
Page 703 and 704:
Page 705 and 706:
Page 707 and 708:
Page 709 and 710:
Page 711 and 712:
Page 713 and 714:
MD&A Overview Practical Guidance Pa
Page 715 and 716: MD&A Overview Objective: “To prov
Page 717 and 718: MD&A Overview Overview of Item 303:
Page 719 and 720: MD&A Overview Overview of Item 303
Page 721 and 722: MD&A Overview Overview of Item 303
Page 723 and 724: MD&A Overview Elements of MD&A - In
Page 739 and 740: MD&A Overview Item 303 of Reg. S-K:
Page 741 and 742: MD&A Overview Item 303 of Reg. S-K:
Page 743 and 744: MD&A Overview Three-Step Test: 1.
Page 745 and 746: MD&A Overview When is an effect
Page 747 and 748: MD&A Overview When is an effect
Page 749 and 750: MD&A Overview More about SAB 99 (co
Page 751 and 752: MD&A Overview Cautionary Tales Or
Page 753 and 754: MD&A Overview Cautionary Tale No. 1
Page 761 and 762: MD&A Overview • Revenue Recogniti
Page 763 and 764: MD&A Overview • Operating Expense
Page 765: MD&A Overview Concluding observatio
Page 769 and 770: Rule 10b-5 and Insider Trading Poli
Page 771 and 772: Rule 10b5-1(b): Rules 10b5-1 and 10
Page 773 and 774: Rule 10b5-1 Plans Reason for plans
Page 775 and 776: Section 16 Reporting and Short-Swin
Page 783 and 784: Section 402 (a/k/a 13(k)) Prohibite
Page 785 and 786: Section 306 of Sarbanes Oxley Black
Page 787 and 788: Session 8 Agenda Part 1 Woe to be a
Page 789 and 790: Proxy Regulation Under Securities E
Page 795 and 796: Proxy statement as vehicle for soci
Page 809 and 810: Google: Summary Compensation Table
Page 817 and 818:
Proxy Regulation Under Securities E
Page 819 and 820:
Page 821 and 822:
Page 823 and 824:
Page 825 and 826:
Page 827 and 828:
Session 8 Agenda Part 1 Woe to be a
Page 829 and 830:
Foreign Private Issuers - Securitie
Page 831 and 832:
Foreign Private Issuers - Securitie
Page 833 and 834:
Rule 802 - Exchange Offers and Busi
Page 835 and 836:
Foreign Private Issuer Registration
Page 837 and 838:
Foreign Private Issuers - Exchange
Page 839 and 840:
Page 841 and 842:
Page 843 and 844:
Level I ADRs Level I ADRs - Traded
Page 845 and 846:
Level III ADRs “Offering Facility
Page 847 and 848:
Session 8 Agenda Part 1 Woe to be a
Page 849 and 850:
Page 851 and 852:
Session 9 Agenda Part 1 Mergers and
Page 853 and 854:
Mergers and Acquisitions under Exch
Page 855 and 856:
Page 858 and 859:
Page 860 and 861:
Page 862:
Page 867 and 868:
Page 869 and 870:
UNITED STATES SECURITIES AND EXCHAN
Page 871 and 872:
Page 873 and 874:
Page 875 and 876:
Page 877 and 878:
Page 879 and 880:
Page 881 and 882:
CAREY INTERNATIONAL TO BE ACQUIRED
Page 883 and 884:
Page 885 and 886:
Rule 13E-4 Transaction: Option Exch
Page 887 and 888:
Rule 13E-4 Transaction: Option Exch
Page 889 and 890:
Page 891 and 892:
Page 893 and 894:
Page 895 and 896:
Schedule 13D Treatment of Derivativ
Page 897 and 898:
Schedule 13D Recent Developments (c
Page 899 and 900:
Page 901 and 902:
Page 903 and 904:
Rule 10b-5 and Related Matters Basi
Page 905 and 906:
Rule 10b-5 and Related Matters Prim
Page 907 and 908:
Rule 10b-5 and Related Matters Liab
Page 909 and 910:
Rule 10b-5: Basic Elements False o
Page 911 and 912:
Rule 10b-5: “In connection with .
Page 913 and 914:
Page 915 and 916:
Page 917 and 918:
Compare: Rule 10b-5: “Reliance .
Page 919 and 920:
Rule 10b-5: “Reliance . . .”
Page 921 and 922:
Page 923 and 924:
Page 925 and 926:
“Loss Causation . . .” (cont’
Page 927 and 928:
Rule 10b-5: “Purchaser/Seller . .
Page 929 and 930:
Rule 10b-5: “Scienter or Fault”
Page 931 and 932:
Rule 10b-5: Recklessness? Post-PSLR
Page 933 and 934:
Rule 10b-5: Recent Developments Rec
Page 935 and 936:
Rule 10b-5: Recent Developments Sec
Page 937 and 938:
Rule 10b-5: Recent Developments Sar
Page 939 and 940:
Rule 10b-5: Statute of Limitations
Page 941 and 942:
Rule 10b-5: Issuer Duty to Update v
Page 943 and 944:
Session 9 - Rule 10b-5 Study Proble
Page 945 and 946:
TO BE ADDED Session 9 - Rule 10b-5
Page 947 and 948:
Page 949 and 950:
Page 951 and 952:
TO BE ADDED Session 9 - Rule 10b-5
Page 953 and 954:
Insider Trading Liability What is t
Page 955 and 956:
Insider Trading Liability “Classi
Page 957 and 958:
Insider Trading Liability Evolution
Page 959 and 960:
Rule 10b5-2 (cont’d) (1) A person
Page 961 and 962:
Tipper Liability: Insider Trading:
Page 963 and 964:
Tipper/Tippee Liability Study Probl
Page 965 and 966:
Tipper/Tippee Liability Study Probl
Page 967 and 968:
Insider Trading: Non-Equity Securit
Page 969 and 970:
TO BE ADDED Insider Trading: Study
Page 971:
show all

U.S and Trans-Border Securities Regulation

Create successful ePaper yourself

Delete template?

Save as template?