Nasdaq 20% Rule: Stockholder Approval Covenants | Practical Law

Nasdaq 20% Rule: Stockholder Approval Covenants | Practical Law

Standard Clauses that can be used as sample contractual language when structuring a securities transaction that may trigger Nasdaq's 20% rule. Nasdaq requires stockholder approval before a listed company can issue twenty percent or more of its outstanding common stock or voting power. These Standard Clauses have integrated notes with important explanations and drafting tips.

Nasdaq 20% Rule: Stockholder Approval Covenants

Practical Law Standard Clauses 4-507-2339 (Approx. 4 pages)

Nasdaq 20% Rule: Stockholder Approval Covenants

by Practical Law Corporate & Securities
MaintainedUSA (National/Federal)
Standard Clauses that can be used as sample contractual language when structuring a securities transaction that may trigger Nasdaq's 20% rule. Nasdaq requires stockholder approval before a listed company can issue twenty percent or more of its outstanding common stock or voting power. These Standard Clauses have integrated notes with important explanations and drafting tips.