Posts Tagged 'number of shareholders'

Limiting the Number of Shareholders in Private Companies

January 19 2012 No Commented

The U.S. Securities Exchange Act of 1934, section 12(g), generally limits a privately held company to fewer than 500 shareholders.   The assumption has been that companies with 500 investors are quasi-public anyway, and for disclosure and other reasons should be forced to go public when the shareholder number approaches this limit. Since the IPO market […]