Small business of-interest, need-to-know and news-to-watch. Subject is about binding arbitration elimination…..cause and effect.
Excerpt…….I am concerned with the abruptness by which the SEC killed the Carlyle provision, with no articulation of its objection beyond the fact that it disapproves of arbitration provisions in governing documents. Its action will discourage other companies from experimenting with more benign provisions, to which there might be no legitimate objection. The issue of how arbitration should be treated is far too important to be resolved by ad hoc SEC Staff (or even Commission) decisions to deny acceleration of Securities Act filings. What concerns me most about the Carlyle situation is the arbitrary and unreviewable process by which the SEC pressured the elimination of Carlyle’s provision relating to a subject over which the SEC had, at best, a very questionable mandate to regulate.
Read full article……via Arbitration Provisions in Corporate Governance Documents — The Harvard Law School Forum on Corporate Governance and Financial Regulation.
