TheCorporateCounsel.net

Last week on Section16.net, Alan Dye blogged about a recent decision regarding Rule 16b-3. Here’s the intro:

Peter Romeo and I have noted many times that neither the courts nor the SEC has ever addressed the question whether Rule 16b-3 exempts a transaction between the issuer and an officer or director if the transaction is approved while the person is an officer or director but occurs after termination of service. Uncertainty exists because the rule exempts transactions with an officer or director (not a former officer or director), and the question usually comes up in connection with such post-termination transactions as tax withholding upon the exercise of an option or a pay-out of stock units in a deferred compensation account. Most practitioners have gotten comfortable that the exemption should be available, and a recent decision by the SDNY dismissing a complaint appears to support that conclusion.

The blog continues with a discussion of the complaint and the decision. There have been lots of Section 16-related developments this summer that Alan has been covering over on Section16.net. As a member of Section16.net, you can subscribe to get Alan’s updates delivered right to your inbox so you don’t miss out on any timely reminders or related court decisions. If you’re not currently receiving other blogs by email, you can sign up here!

– Meredith Ervine