OTCBB Suspension of Late Filers - 3 Strikes Principle
On November 16, 2005, the Commission accepted the change to Rule 6530 (the "Eligibility Rule").
The rule change makes those OTCBB issuers that are delinquent a few times in a 24-thirty day period period of time, and these OTCBB issuers that are removed for failure to file two occasions in a 24-month period, ineligible for quotation on the OTCBB for a time period of a single year following their removing. Stories submitted inside of the extension interval permitted by SEC Principle 12b-25 are regarded timely filed.
Historically, NASDAQ has reported that approximately 80% of issuers attain compliance in the grace period of time, but that twenty% of issuers are unsuccessful to comply and are at some point de-detailed.
As soon as eliminated, the issuer can not re-record on the OTCBB for a interval of at minimum one 12 months, and ought to file at minimum a single Form 10-K and about three Kinds 10-Qs. If at any time prior to becoming relisted, the issuer is late in submitting a periodic report, the 1 year time period restarts.
If an issuer is late with far more than 1 filing in a row, the sequence of late filings will only count as 1 "strike" till this sort of time as the issuer will get again present in its filings. Due to the fact of this, there is some method in how you get back again present after you have grow to be delinquent in a filing. For illustration, if an issuer has missed a submitting and has experienced an "e" appended to their inventory symbol, there will be a temptation to file the delinquent filing as shortly as attainable to get the "e" removed. Nonetheless, if it is likely that the subsequent filing will also be late, the issuer may take into account waiting around and carrying out each filings at the very same time in buy to incur only one "strike" beneath this new rule amendment. This strategy has to be weighed towards the chance that, right after the "e" period, the issuer will need to submit a new Type 211 to transfer back again up to the OTCBB from the Pink Sheets.
NASDAQ executed the proposed rule in relationship with filings for durations ending on or following October 1, 2005. Delinquent filings previous to that interval do not count toward the new principle.
REFERENCES:
http://www.upublish.info/Article/Variables-To-Look-At-Before-Employing-A-Lawyer/770518
http://article2008.com/Art/1018026/355/Determining-The-Competence-Level-of-Your-Lawyer.html
http://www.articlebanker.com/Article/684658/How-Competent-Is-Your-Lawyer.html