US

United States Securities and Exchange Commission adopts “Householding” rules for Proxy and Information Statements

Douglas P. Faucette. Muldoon Murphy & Faucette LLP (assisted by Jon C. Findlay, Jr.)

Introduction

The United States Securities and Exchange Commission (“SEC”) recently adopted amendments to its proxy rules under the Securities Act of 1933 (the “Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”). These new rules allow the delivery of a single proxy statement or information statement to multiple security holders sharing a common address. This method of delivery, commonly referred to as “householding,” was previously approved in SEC rules adopted in 1999, which permit the householding of prospectuses, and annual and semiannual reports. The new rule amendments became effective on December 4, 2000, and were implemented for the first time for companies with a December 31, 2000 year-end. Foreign companies with US security holders, except for “foreign private issuers” (as defined in the Exchange Act), are subject to the SEC proxy rules and may be able to take advantage of the new rules.