NYSE Proposes Related Party Approval Exemption for Early Stage Companies

January 23, 2015

The NYSE has proposed amending its listing standards to exempt early stage companies from the requirement to obtain shareholder approval before issuing shares to related parties and affiliates. The NYSE noted that early stage companies are hampered in their ability to obtain financing and “frequently need to raise capital via private placement share issuances to their founders or other significant existing shareholders or their executive officers or directors.” According to the NYSE, this proposed change follows from its recent amendment to allow initial listing by early stage companies with a total global market cap of at least $200 million that do not otherwise meet the NYSE’s assets and equity test. 

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