Regulatory Alerts2021-04-23
SEC Memorandum Circular No. 07 s. 2021 — Calling of Special Stockholders’ Meetings
The Securities and Exchange Commission issued this memorandum circular to establish rules enabling shareholders holding at least ten percent of a publicly-listed company's stock to call special stockholders' meetings. The document mandates that qualifying shareholders must hold their shares for one year, submit a written request forty-five days in advance, and ensure the agenda addresses legitimate corporate interests distinct from director removal. The Board of Directors is required to validate the request within twenty days or face liability, while the Commission retains authority to impose sanctions for violations or abuse of these rights.
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