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Section 12(j) Proceedings ? The End of All Public Trading

By Michael MacPhail, Esq.

             Reporting public companies that are delinquent in their filings need to beware of the potential consequences of an enforcement action under Section 12(j) of the Securities Exchange Act of 1934, which could include the end of all public trading in their stock.                In a previous article I noted how the SEC is increasingly using its powers under Section 12(j) to revoke registration of companies? stock.  Between September 8 and 12, 2008, the SEC issued orders either instituting proceedings under that section, or revoking the registration of the stock of dozens of public companies, many of which were the subject of reverse mergers.  These orders highlight the problems associated with inactive or ?dirty? shells and the need to conduct due diligence before acquiring them...continue to full post

Full post as published by NASD, SEC and Regulatory Defense Blog on September 12, 2008 (boomark / email).