While I agree with the SEC’s recent flexibility and delays both with regards to both foreign companies and to smaller companies, the thrust of Peter Stefano’s letter (“Corporate law must be refined to strike a balance” FT May 3, 2005) appears to be looking for a way out, particularly for smaller companies.
Yes the new requirements are onerous and expensive but there are ways of mitigating these through the right policies, efficiency and technology, which will achieve compliance while being economically realistic.
Announcing to investors that the company they own is not following the rules is pushing ‘buyer beware’ too far.
If companies are to tap the markets, they must understand that it is not acceptable to provide less than full information, to ignore controls and to leave their exposures unplugged.
OAM
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