Third Circuit Rejects Petition for Rehearing: Section 16 Short-Swing Profit Exemption Limited in M&A Context
- Topics:
- Acquisitions
- Tags:
- Equity,
- Equity Security,
- Exemption,
- Finance,
- Financial Services,
- Investment,
- M&A,
- Mergers & Acquisitions,
- Thelen Reid & Priest
- Source:
- Thelen Reid & Priest
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Overview: Section 16(b) of the Exchange Act applies to officers, directors and greater than 10% beneficial owners of equity securities of companies having equity securities registered under Section 12 of the 1934 Act. Rule 16b-3 is an exemption from Section 16(b) that has been in existence for many years. On the Rule 16b-3 issue, the SEC argued that it did not intend Rule 16b-3 to apply only to compensatory transactions, but instead intended to exempt transactions that satisfy the "gate-keeping" standards set forth in the rule, whether or not compensatory. This article discusses various other issues relating to this act.
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Format: HTML | Date: Jun 2003 | Pages: 1
