Delisting Companies?? 1292

  • Hi,
    Does anyone in here know the names of companies which have initiated a delisting of their securities/shares after SOA 2002?
    The only one I know of is LionBioscience (a German company)…
    Thanks in advance

  • HI, here is a small part from my disseration on SOX.
    Is De-listing from US based stock exchange a solution to avoid SOX? Can a
    US listed company would de-list itself to avoid the provisions of SOX? Here,
    the provisions of SEC come into play. The rules of SEC say that an existing listed company cannot de-list itself from the U.S. stock exchange if it has 300
    or more shareholders unless relevant procedures are accomplished. So you
    are caught under SOX. ( and
    ( /1138916)
    Going Private?
    If not de-listing then, is Going Private a solution to avoid SOX? Would it be
    prudent for a US listed public company to change it’s status from public
    limited to private limited, especially for a small or a medium sized company?
    Going private has many advantages:
    (1) Currently SOX extends just two provisions to private companies,
    Firstly, concepts such as documentation and controls should be in place in
    every company. Secondly, most private companies work in some capacity
    with public companies. There is a general notion that the public companies
    are going to want to work with the companies that are SOX compliant
    themselves. (A planner’s guide to SOX, Regina Baraban, Insurance
    Conference Planner, Jan/Feb 2005, Vol. 41, issue 1, p.31-33, Business
    Source Premier)
    (2) Eliminating many disclosure requirements,
    (3) Can put company in better competitive position,
    (4) Free from restrictions on related party transactions,
    (5) Reducing the potential for director liability.
    But the other side of the coin should also be considered before going private
    such as:

    1. Financial constraints.
    2. Loss of goodwill/prestige.
    3. in addition to above, going private in itself is not an easy task. The costs
      and procedures involved would be even higher than a year’s profit. (Why and
      How to go private, Foley and Lardner, Mondaq Business Briefing, Sep 16,
      2004, LexisNexis)

  • A recent article about companies de-listing (Going Dark) in connection with Sarbanes-Oxley can be found at:
    Additionally, the GAO published a study:
    in April 2004, ‘Opportunities Exist to Enhance Investor Confidence and Improve Listing Program Oversight’
    The Study identifies persons in the various regulatory bodies and market exchanges who might be able to provide further insight or possibly a listing of companies that are no longer public due to Sarbanes-Oxley compliance related matters.

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