By Attorney Michael T. Dunn
On March 27, 2012, the U.S. House of Representatives voted to approve the version of the Jumpstart Our Business Startups Act (the “JOBS Act”) that was passed by the Senate on March 22, and President Obama has confirmed that he will sign the JOBS Act into law. The new law eases or eliminates several restrictions on the offer and sale of securities, expands current standards that exempt a company from becoming subject to public reporting and disclosure rules under the federal securities laws, and creates a new category of “emerging growth” companies that may now conduct initial public offerings of stock while being exempt from certain financial disclosure and governance requirements for up to five years.
