| Registration Requirements for Securities Brokers and Dealers |
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| Most brokers and dealers are required under Section 15 of the Securities Exchange Act of 1934 to register with the Securities and Exchange Commission and with a self-regulatory organization such as a national stock exchange before engaging in the securities business.More... |
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| Corporate Criminal Penalties |
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| Organizations may be held liable for criminal conduct just as individuals may be convicted of criminal conduct. The Organizational Sentencing Guidelines of the United States Sentencing Commission (Guidelines) apply to all federal felony and Class A misdemeanor offenses. Under the Guidelines, an organization can be fined, sentenced to probation for up to five years, subjected to statutory forfeiture, ordered to make restitution, and issue public apologies to victims. The term "organization" refers to "a person other than an individual." This includes publicly and privately held corporations, partnerships, associations, joint-stock companies, labor unions, trusts, pension funds, unincorporated organizations, non-profit entities, governments, and political subdivisions of governments. According to the Deputy Counsel for the United States Sentencing Commission, the most common criminal offense committed by an organization is fraud. Other common offenses include environmental pollution, money laundering, and food and drug violations. The Guidelines have two basic purposes: just punishment and deterrence.
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| Contacting Shareholders of Publicly Traded Companies |
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| Publicly traded companies are required to provide a process for contacting their shareholders in certain circumstances. The Securities and Exchange Commission has issued rules requiring companies to provide a way to contact shareholders as part of a solicitation of proxies or shareholder votes in opposition to company proposals or in favor of proposals put forward by shareholders. Companies also are required by the Commission to provide a way to contact shareholders in connection with a tender offer by which the company's shareholders are invited to sell their shares.More... |
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| Business Review Letters -- Antitrust Clearance from the Department of Justice |
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| Before engaging in a business practice, individuals and companies may seek the view of the U.S. Department of Justice on the legality of the business practice under federal antitrust law. The procedure, known as a Business Review, allows persons to ask the Department of Justice for a statement of its current enforcement intentions. Although the Department of Justice is not authorized to provide advisory opinions to private parties, its business review procedure does allow such parties to seek a statement of present enforcement intentions.More... |
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| Securities Transfer Agents |
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| Transfer agents track the owners of securities. They also perform several other services for companies with registered and publicly traded securities in the course of tracking the owners of the securities. Transfer agents usually are banks or trust companies, although a company with publicly traded securities may perform transfer agent functions for its own securities. More... |
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