The "20% Rule" And Shareholder Vote Issues

Recently, as we blogged about, the Nasdaq Listing and Hearing Review Council published a solicitation in which it sought comment regarding the Nasdaq Stock Market, Inc.'s shareholder approval rules. Given the effect of these rules on various capital formation transactions by Nasdaq-listed companies, we collaborated with Dave Donohoe and David Compton of Donohoe Advisory Associates LLC to provide some perspectives regarding various aspects of the existing rules and suggest some areas in which the rules might be reviewed or refined in order to acknowledge and address the significant changes in the capital markets since the original adoption of these requirements. You may access the comment letter here: http://www.mofo.com/~/media/Files/PDFs/160224NasdaqCommentLetter.pdf.