Home -> Law Blog Directory -> Criminal Law Blogs -> SECLaw.com

Criminal Law

: SECLaw.com

Facebook Tells Employees Not to Sell Shares

By Mark H. Astarita, Esq.

Facebook has an interesting problem - it is in danger of having too many shareholders, an outcome that is being made possible by online trading sites like Sharespot.com, which allows shareholders in private companies to sell their shares to others.There are plenty of issues surrounding these sites for private companies, including not knowing who your shareholders are, and having your shares too widely dispersed. One of the more significant issues however, is Section 12(g) of the Securities Exchange Act of 1934. That section requires a private company with total assets in excess of $10 million and 500 or more record holders of a class of equity security, to register the class of equity security with the SEC, unless it has an exemption from such registration...continue to full post

Full post as published by SECLaw.com on April 05, 2010 (boomark / email).