In the context of the Securities Act of 1933 ( www.practicallaw.com/1-382-3805) , as amended (Securities Act), and the Securities Exchange Act of 1934 ( www.practicallaw.com/5-382-3808) , 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 ( www.practicallaw.com/2-382-3758) 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 ( www.practicallaw.com/8-382-3265) 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.