SEC deregistration for non-US companies

08 February 2007

The article reviews the SEC’s proposed changes to the deregistration rules for non-US companies. The SEC estimates that up to 25% of non-US companies currently filing annual reports could terminate their reporting obligations during the first year if the proposal is adopted.

The SEC expects that the proposal will be adopted before SEC annual reports for 2006 become due (30 June 2007). Companies that are already preparing their internal controls evaluations for section 404 purposes (due for the first time for many of them in June 2007) will have to decide whether they are comfortable suspending their efforts pending adoption of the proposal.

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