From public to private company 2239



  • Our company will become a private company per the end of 2007. Our fiscal year ends March 08.
    What are the requirements for SOX compliance before we become a private company?
    If there are no requirements, the company will decide to stop all SOX related activities.
    Is this possible or do we need to report anything?
    Our consultants mentioned that we have to complete form 15F before we are dismissed from any SOX regulations.
    Does anyone have experience with de-listing?
    Thanks



  • Hi,
    Some time ago, I read an interesting paper on companies that de-list from the stock market…this is referred to as ‘going dark’.
    The article can be found at:
    gates dot comm.virginia.edu/uvafinanceseminar/2004Triantis.pdf
    Hope this helps,
    Milan



  • As long as you are a public filer, you have the quarterly reporting requirements to meet. Once your last pquarterly filing as a public company has been made, you can discontinue your SOX activities. You will want to make certain that even though your common stock is no longer publicly-traded, that you also have no publicly-traded debt as that requires quarterly filings and you would still be required to comply with SOX.



  • Just one minor clarification re: Milan’s post. That’s a great article (I learned a lot by reading it - thanks.), but it specifically addresses firms ‘going dark’ as opposed to privatizing. There is a distinction between the two; going dark does not necessarily imply privatization.
    If your company is indeed privatizing, then good luck to you. It must be nice to know that your SOX audits are coming to an end.



  • Thank you all for your comments,
    Yes the company is privatizing, thus my Sox audit are coming to an end.
    Thanks for the reference to the article.



  • Hi,
    Some time ago, I read an interesting paper on companies that de-list from the stock market…this is referred to as ‘going dark’.
    The article can be found at:
    gates dot comm.virginia.edu/uvafinanceseminar/2004Triantis.pdf
    Hope this helps,
    Milan
    Hi Milan. I have some troule trying to access the site for the article. Is there some other way you could repost the information again or send me a note so as to guide me in the right direction.
    Thanks



  • Scottie,
    I had no problem accessing it. Just paste the URL in your browser and change the letters ‘dot’ to a period and remove the extra spaces. Leave the letters ‘comm’ with 2 m’s.



  • Scottie,
    I had no problem accessing it. Just paste the URL in your browser and change the letters ‘dot’ to a period and remove the extra spaces. Leave the letters ‘comm’ with 2 m’s.
    Thanks alot kymike. I got it.


Log in to reply