• SEC Adopts Shell Companies Rule
  • January 4, 2006
  • Law Firm: Blank Rome LLP - Philadelphia Office
  • The Securities and Exchange Commission ("SEC") adopted new rules related to the filings made by public shell companies with the SEC. Under these new rules, a shell company is defined as a company with no or nominal operations and either: (i) no or nominal assets, (ii) assets consisting solely of cash and cash equivalents, or (iii) assets consisting of any amount of cash and cash equivalents and nominal other assets, as reflected on the company's balance sheet prepared in accordance with generally accepted accounting principles.