Tag: Rule 3-13 of Reg S-X

You want mandatory arbitration in your charter? Hey, just ask!

This is the opening paragraph from Tuesday’s column by Alison Frankel, one of my favorite legal columnists/bloggers:

“This could be the start of something huge: Securities and Exchange Commissioner Michael Piwowar said in a speech Monday to the Heritage Foundation that the SEC is open to the idea of allowing companies contemplating initial public offerings to include mandatory shareholder arbitration provisions in corporate charters. If Piwowar’s statements…mark a new SEC policy on mandatory arbitration, they could be the beginning of the end of securities fraud class actions.”