Section 16 Training for Public Companies: Beneficial Ownership Reporting and Profit Disgorgement Presentation

Summary

The contents of this practice note may be used to prepare a presentation to advise the directors and officers (D&O) of a public company of their obligations under Section 16 (15 U.S.C. § 78p) of the Securities Exchange Act of 1934, as amended (Exchange Act), with respect to their ownership of and transactions in the company's securities. These obligations typically arise in connection with a company's initial public offering (IPO) but apply to the directors and officers (as defined in Rule 16a-1(f) under the Exchange Act (17 C.F.R. § 240.16a-1(f))) of all issuers (except foreign private issuers, as provided in Rule 3a12-3(b) under the Exchange Act (17 C.F.R. § 240.3a12-3(b))) that have a class of equity securities registered under Section 12 of the Exchange Act (15 U.S.C. § 78l).