Section 16 Resolutions Approving the Disposition of Target Securities by Insiders in a Merger | Practical Law

Section 16 Resolutions Approving the Disposition of Target Securities by Insiders in a Merger | Practical Law

Board resolutions approving the disposition of target derivative or equity securities by officers and directors of a target company in connection with a merger. These resolutions are designed to meet the approval requirements for exempting transactions from short-swing profit liability under Rule 16b-3(e) issued under the Securities Exchange Act of 1934.  This Standard Clause has integrated notes with important explanations and drafting tips.

Section 16 Resolutions Approving the Disposition of Target Securities by Insiders in a Merger

by Josh LaGrange, Fried, Frank, Harris, Shriver & Jacobson LLP, with Practical Law Employee Benefits & Executive Compensation
MaintainedUSA (National/Federal)
Board resolutions approving the disposition of target derivative or equity securities by officers and directors of a target company in connection with a merger. These resolutions are designed to meet the approval requirements for exempting transactions from short-swing profit liability under Rule 16b-3(e) issued under the Securities Exchange Act of 1934. This Standard Clause has integrated notes with important explanations and drafting tips.