To permit an issuer, when determining the market capitalization of the issuer for purposes of testing the significance of an acquisition or disposition, to include the value of all shares of the issuer.

Bill: 118-hr-2497
Sponsor: full_name: Rep. Hill, J. French [R-AR-2]
Introduced: 2023-04-06
Policy area: Finance and Financial Sector
Latest action: action_date: 2023-04-06
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2023-04-06
action_desc: Introduced in House
text: <p>This bill expands the information allowed when calculating whether an acquisition or disposition of a subsidiary is significant for purposes of required financial disclosures by publicly traded companies. Currently, an acquisition or disposition is considered significant when the company's investment in the subsidiary is calculated to exceed 10% of the aggregate worldwide market value of the company's voting and non-voting common equity. Under the bill, this market value may additionally include applicable trading value, conversion value, or exchange value of all of the company's outstanding classes of stock, including preferred stock and non-traded common shares that are convertible into or exchangeable for traded common shares.</p>

tv_txt: I 118th CONGRESS 1st Session H. R. 2497 IN THE HOUSE OF REPRESENTATIVES April 6, 2023 Mr. Hill introduced the following bill; which was referred to the Committee on Financial Services A BILL To permit an issuer, when determining the market capitalization of the issuer for purposes of testing the significance of an acquisition or disposition, to include the value of all shares of the issuer.

1. Avoiding aberrational results in requirements for acquisition and disposition financial statements The Securities and Exchange Commission shall revise section 210.1–02(w)(1)(i)(A) of title 17, Code of Federal Regulations, to permit a registrant, in determining the significance of an acquisition or disposition described in such section 210.1–02(w)(1)(i)(A), to calculate the registrant’s aggregate worldwide market value based on the applicable trading value, conversion value, or exchange value of all of the registrant’s outstanding classes of stock (including preferred stock and non-traded common shares that are convertible into or exchangeable for traded common shares) and not just the voting and non-voting common equity of the registrant.