Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
The JOBS Act and the Return of the Microcaps
Six years ago, I wrote in a sister publication opposing the application of the Sarbanes-Oxley Act's internal accounting control rules to small public companies, but I broke with my fellow critics on the reason why. I argued that small companies shouldn't be treated like big companies, not because they couldn't afford regulation, but because being small made them qualitatively different. Intrusive regulation made sense for large companies, I argued, because their failures could cause wide-ranging damage. Words like “systemic risk” were not yet in vogue, but that's what I meant. On the other hand, because failure and fraud in small companies would not impact the rest of the economy, they should largely be left alone, and their investors left to their traditional fraud remedies. It was, admittedly, a radical position. See Aegis J. Frumento, The Rich are Different, The Corporate Compliance & Regulatory Newsletter (May 2006), available at www.lawjournalnewsletters.com/issues/ljn_corporate/3_9/news/146512-1.html.
Now, one Great Recession later, Congress has officially recognized that small companies are indeed different by passing the Jumpstart Our Business Start-ups Act of 2012, which President Obama signed into law on April 5, 2012. Pub. Law 112-106, 126 Stat. 306 (the JOBS Act). It won't become fully implemented until next January, when ' if ' the SEC passes enabling rules. Even now, though, we can say with confidence that the JOBS Act will encourage small businesses and their investors to take more unregulated risks than they have been able to for a long time.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
New York's Latest Cybersecurity Commitment
On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.