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An S.E.C, No-Action letter allowed Facebook to issue restricted stock units without counting the recipients as shareholders for purposes of the 500 shareholder rule.
"The co-op probably could take the position that as any parking space is vacated by either a rental tenant or shareholder, the 'one space per shareholder' rule would apply, and the newly vacated space would go to the next shareholder on the waiting list".
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Managers at many other firms have been scared by the spectacle and are now scrambling to adopt new shareholder rules that will make it easier to thwart takeover bids in future.
Auditors at KPMG found the city's officials respected legislation governing public transport bodies, as well as shareholder rules.
Yet still shareholders rule.
Facebook may be going public not to comply with the 500-shareholder rule.
The 500-shareholder rule is often cited as the main rationale for why the company will go public next year.
Private companies have started issuing them too– mostly because they don't count against the 500-shareholder rule.
A couple years ago, Facebook won an exemption from the SEC's 500-shareholder rule by arguing that the shares were mostly held by employees, and it also changed the way it issued restricted stock.
What's more, the legislation dispenses with the 500-shareholder rule, which put a limit on the number of shareholders a company was allowed before registering with the SEC (and going public).
Another notable measure: The legislation does away with the 500-shareholder rule, which put a cap on the amount of shareholders a company was allowed before having to register with the SEC.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com