Source: https://www.law.cornell.edu/uscode/text/15/78n-1?qt-us_code_tabs=3
Timestamp: 2016-05-05 14:50:01
Document Index: 276843943

Matched Legal Cases: ['§ 78', '§ 78', '§ 78', '§ 14', '§ 951', '§ 102', '§ 77', 'art 11', 'art 192', 'art 193', 'art 197', 'art 335', 'art 390', 'art 563', 'art 563', 'art 563', 'art 200', 'art 201', 'art 210', 'art 229', 'art 230', 'art 232', 'art 239', 'art 240', 'art 242', 'art 249', 'art 249', 'art 270', 'art 274']

15 U.S. Code § 78n–1 - Shareholder approval of executive compensation | US Law | LII / Legal Information Institute
U.S. Code › Title 15 › Chapter 2B › § 78n–1 15 U.S. Code § 78n–1 - Shareholder approval of executive compensation
Separate resolution required (1)
In general Not less frequently than once every 3 years, a proxy or consent or authorization for an annual or other meeting of the shareholders for which the proxy solicitation rules of the Commission require compensation disclosure shall include a separate resolution subject to shareholder vote to approve the compensation of executives, as disclosed pursuant to section 229.402 of title 17, Code of Federal Regulations, or any successor thereto.
Frequency of vote Not less frequently than once every 6 years, a proxy or consent or authorization for an annual or other meeting of the shareholders for which the proxy solicitation rules of the Commission require compensation disclosure shall include a separate resolution subject to shareholder vote to determine whether votes on the resolutions required under paragraph (1) will occur every 1, 2, or 3 years.
Effective date The proxy or consent or authorization for the first annual or other meeting of the shareholders occurring after the end of the 6-month period beginning on July 21, 2010, shall include—
the resolution described in paragraph (1); and
a separate resolution subject to shareholder vote to determine whether votes on the resolutions required under paragraph (1) will occur every 1, 2, or 3 years.
Shareholder approval of golden parachute compensation (1)
Disclosure In any proxy or consent solicitation material (the solicitation of which is subject to the rules of the Commission pursuant to subsection (a)) for a meeting of the shareholders occurring after the end of the 6-month period beginning on July 21, 2010, at which shareholders are asked to approve an acquisition, merger, consolidation, or proposed sale or other disposition of all or substantially all the assets of an issuer, the person making such solicitation shall disclose in the proxy or consent solicitation material, in a clear and simple form in accordance with regulations to be promulgated by the Commission, any agreements or understandings that such person has with any named executive officers of such issuer (or of the acquiring issuer, if such issuer is not the acquiring issuer) concerning any type of compensation (whether present, deferred, or contingent) that is based on or otherwise relates to the acquisition, merger, consolidation, sale, or other disposition of all or substantially all of the assets of the issuer and the aggregate total of all such compensation that may (and the conditions upon which it may) be paid or become payable to or on behalf of such executive officer.
Shareholder approval Any proxy or consent or authorization relating to the proxy or consent solicitation material containing the disclosure required by paragraph (1) shall include a separate resolution subject to shareholder vote to approve such agreements or understandings and compensation as disclosed, unless such agreements or understandings have been subject to a shareholder vote under subsection (a).
Rule of construction The shareholder vote referred to in subsections (a) and (b) shall not be binding on the issuer or the board of directors of an issuer, and may not be construed—
as overruling a decision by such issuer or board of directors;
to create or imply any change to the fiduciary duties of such issuer or board of directors;
to create or imply any additional fiduciary duties for such issuer or board of directors; or
to restrict or limit the ability of shareholders to make proposals for inclusion in proxy materials related to executive compensation.
Disclosure of votes Every institutional investment manager subject to section 78m
(f) of this title shall report at least annually how it voted on any shareholder vote pursuant to subsections (a) and (b), unless such vote is otherwise required to be reported publicly by rule or regulation of the Commission.
In general The Commission may, by rule or order, exempt any other issuer or class of issuers from the requirement under subsection (a) or (b). In determining whether to make an exemption under this subsection, the Commission shall take into account, among other considerations, whether the requirements under subsections (a) and (b) disproportionately burdens [1]
small issuers.
Treatment of emerging growth companies (A)
In general An emerging growth company shall be exempt from the requirements of subsections (a) and (b).
Compliance after termination of emerging growth company treatment An issuer that was an emerging growth company but is no longer an emerging growth company shall include the first separate resolution described under subsection (a)(1) not later than the end of—
in the case of an issuer that was an emerging growth company for less than 2 years after the date of first sale of common equity securities of the issuer pursuant to an effective registration statement under the Securities Act of 1933 [15 U.S.C. 77a et seq.], the 3-year period beginning on such date; and
in the case of any other issuer, the 1-year period beginning on the date the issuer is no longer an emerging growth company.
So in original. Probably should be “burden”.
(June 6, 1934, ch. 404, title I, § 14A, as added Pub. L. 111–203, title IX, § 951,July 21, 2010, 124 Stat. 1899; amended Pub. L. 112–106, title I, § 102(a)(1),Apr. 5, 2012, 126 Stat. 308.)
The Securities Act of 1933, referred to in subsec. (e)(2)(B)(i), is title I of act May 27, 1933, ch. 38, 48 Stat. 74, which is classified generally to subchapter I (§ 77a et seq.) of chapter 2A of this title. For complete classification of this Act to the Code, see section 77a of this title and Tables.
2012—Subsec. (e). Pub. L. 112–106designated existing provisions as par. (1), inserted heading, substituted “any other issuer” for “an issuer”, and added par. (2).
Section effective 1 day after July 21, 2010, except as otherwise provided, see section 4 ofPub. L. 111–203, set out as a note under section 5301 of Title 12, Banks and Banking.
This is a list of parts within the Code of Federal Regulations for which this US Code section provides rulemaking authority.This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.12 CFR - Banks and Banking12 CFR Part 11 - SECURITIES EXCHANGE ACT DISCLOSURE RULES12 CFR Part 192 - CONVERSIONS FROM MUTUAL TO STOCK FORM12 CFR Part 193 - ACCOUNTING REQUIREMENTS12 CFR Part 197 - SECURITIES OFFERINGS12 CFR Part 335 - SECURITIES OF NONMEMBER INSURED BANKS12 CFR Part 390 - REGULATIONS TRANSFERRED FROM THE OFFICE OF THRIFT SUPERVISION12 CFR Part 563b - CONVERSIONS FROM MUTUAL TO STOCK FORM12 CFR Part 563c - ACCOUNTING REQUIREMENTS12 CFR Part 563g - SECURITIES OFFERINGS
17 CFR - Commodity and Securities Exchanges17 CFR Part 200 - ORGANIZATION; CONDUCT AND ETHICS; AND INFORMATION AND REQUESTS17 CFR Part 201 - RULES OF PRACTICE17 CFR Part 210 - FORM AND CONTENT OF AND REQUIREMENTS FOR FINANCIAL STATEMENTS, SECURITIES ACT OF 1933, SECURITIES EXCHANGE ACT OF 1934, INVESTMENT COMPANY ACT OF 1940, INVESTMENT ADVISERS ACT OF 1940, AND ENERGY POLICY AND CONSERVATION ACT OF 197517 CFR Part 229 - STANDARD INSTRUCTIONS FOR FILING FORMS UNDER SECURITIES ACT OF 1933, SECURITIES EXCHANGE ACT OF 1934 AND ENERGY POLICY AND CONSERVATION ACT OF 1975—REGULATION S-K17 CFR Part 230 - GENERAL RULES AND REGULATIONS, SECURITIES ACT OF 193317 CFR Part 232 - REGULATION S-T—GENERAL RULES AND REGULATIONS FOR ELECTRONIC FILINGS17 CFR Part 239 - FORMS PRESCRIBED UNDER THE SECURITIES ACT OF 193317 CFR Part 240 - GENERAL RULES AND REGULATIONS, SECURITIES EXCHANGE ACT OF 193417 CFR Part 242 - REGULATIONS M, SHO, ATS, AC, AND NMS AND CUSTOMER MARGIN REQUIREMENTS FOR SECURITY FUTURES17 CFR Part 249 - FORMS, SECURITIES EXCHANGE ACT OF 193417 CFR Part 249b - FURTHER FORMS, SECURITIES EXCHANGE ACT OF 193417 CFR Part 270 - RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 194017 CFR Part 274 - FORMS PRESCRIBED UNDER THE INVESTMENT COMPANY ACT OF 1940
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