• When Accessing the Equity Markets Requires an Unexpected Shareholder Vote
  • July 5, 2012
  • Law Firm: Skadden Arps Slate Meagher Flom LLP - New York Office
  • In certain situations, NYSE and NASDAQ rules require a shareholder vote before a company can issue equity or convertible securities. The shareholder approval process — calling a shareholder meeting, preparing a proxy statement, clearing the proxy with the SEC — adds both time and expense that may not be compatible with the capital or strategic needs of the issuer. Understanding these rules is particularly important if a company seeks speedy access to the equity markets to fund a strategic acquisition or execute an opportunistic change in its capital structure.