Congress will soon consider whether to revise a 77-year-old rule that is encouraging Facebook Inc. and other companies with at least 500 shareholders to register for an initial public offering.
Rep. David Schweikert (R-Ariz.) today introduced a bill (read it below) that would amend the Securities Exchange Act of 1934, allowing private companies to have 1,000 shareholders instead of the current 500 before they’re required to publicly disclose their finances, often compelling them to go public.
Called the Private Company Flexibility and Growth Act, the bill would also exempt accredited investors and employees from the 1,000-shareholder limit. Fortune earlier reported news of the bill.
To read the full, original article click on this link: Bill Aims To Loosen Private-Company Stock Rules - Venture Capital Dispatch - WSJ
Author:
Deborah Gage
