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Associate
Practical Law Glossary Item 0-530-8565 (Approx. 3 pages)
Glossary
Associate
In the context of the Securities Act of 1933, as amended (Securities Act), and the Securities Exchange Act of 1934, as amended (Exchange Act), this term is used to indicate a relationship of one person (or entity) with another.
For example, an associate of a director or officer of a reporting company refers to:
- A corporation or organization (other than the reporting company itself or a majority-owned subsidiary of the reporting company) of which the director or officer is:
- an officer or partner; or
- directly or indirectly the beneficial owner of 10% or more of any class of equity securities.
- A trust or other estate in or for which the director or officer:
- has a substantial beneficial interest; or
- serves as trustee or in a similar fiduciary capacity.
- A relative or spouse of the director or officer, or any relative of the spouse, that:
- has the same home as the director or officer; or
- is a director or officer of the reporting company or any of its parents or subsidiaries.
The term "associate" is defined in Rule 405 under the Securities Act and in Rule 12b-2 under the Exchange Act.