28 August 2017

US Corporate Law News: NYSE rules expand requirement to provide advance notice of dividend or stock distribution announcements beyond trading hours

On August 14, 2017, the SEC approved changes to NYSE Listed Company Manual Sections 202.06(B), 204.12 and 204.21 to require listed companies to provide notice to the NYSE at least ten minutes before making any public announcement regarding a dividend or stock distribution, even if the notice is given outside of NYSE trading hours. Until this change, listed companies have been required to provide ten minutes' prior notice for such actions only between the hours of 7:00 a.m. and 4:00 p.m. The rationale for the rule change is that it will afford the NYSE adequate time to address any concerns with the content of a notice and to ensure compliance with applicable NYSE and SEC rules. For more information, see https://www.sec.gov/rules/sro/nyse/2017/34-81393.pdf.

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