Client Alert
| June 29, 2007
The Securities and Exchange Commission Proposes Revisions to Rules 144 and 145 to Shorten the Holding Period for Affiliates and Non-Affiliates
On June 22, 2007, the Securities and Exchange Commission published proposed amendments to Rule 144 and Rule 145 that would shorten the holding period for affiliates and nonaffiliates. In particular, the proposed amendments would:
- reduce the holding period under Rule 144 for restricted securities of reporting companies to six months if the shareholder has not engaged in certain hedging transactions. The holding period for restricted securities of non-reporting companies would remain at one year.
- extend the six-month holding period for restricted securities up to an additional six months for the time during which shareholders engaged in certain hedging transactions. The holding period would not exceed one year.
- permit non-affiliates to resell restricted securities freely after one year. Non-affiliates selling restricted securities of reporting companies would be required to resell in accordance with the current public information requirement after the six-month holding period until one year after the acquisition of the securities.
For more information, please contact your Dewey & LeBoeuf relationship partner, or one of the following:
This memorandum is intended only as a general discussion of these issues. It is not considered to be legal advice. We would be pleased to provide additional details or advice about specific situations. For additional information on this important topic, please feel free to call upon your Dewey & LeBoeuf relationship partner. No part of this publication may be reproduced, in whole or in part, in any form, without our prior written consent.
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