For many years, the staff of the Securities and Exchange Commission (SEC) has maintained an informal policy of refusing to permit registration of public stock offerings if the underlying company instruments require arbitration of disputes between shareholders and the company rather than court litigation. There have been several attempts over the years by business interests to change that informal policy, but those efforts have been unsuccessful in the face of strong political pushback. Here is one online article about the controversy written by an opponent of changing the SEC’s informal policy. There are numerous other articles on the topic that are readily available online.
Premium Content For:
- Litigation Section