COVID-19: SEC Guidance Regarding Annual Shareholder MeetingsOn April 3, 2020 by Schnader in Client Alerts
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Schnader’s Sarah Hewitt published a new Client Alert, “COVID-19: SEC Guidance Regarding Annual Shareholder Meetings.” It reads in part:
The staff of the Division of Corporation Finance of the U.S. Securities and Exchange Commission (“SEC”) issued guidance on March 13, 2020 regarding annual shareholder meetings during the COVID-19 crisis period. A copy of the SEC’s March 13 guidance may be found here.
The SEC released the guidance after receiving inquiries from issuers and shareholders regarding compliance with the federal proxy rules for upcoming annual meetings in light of various logistical issues raised by the spread of COVID-19. Most states have now issued stay at home orders and are mandating social distancing through April 30 and possibly beyond in light of the pandemic. April and May are popular times of year for both public and private companies to hold their annual shareholder meetings as required by state law. Public companies have the additional obligation of preparing, filing, and distributing proxy materials to their shareholders for such meetings.