How Do You Follow The SRO Listing Rules?
An SRO is a self-regulatory organization. In American securities law, the Securities and Exchange Commission (SEC) is the SRO that creates and enforces securities listing rules that all businesses must follow. These rules vary depending upon the stock exchange in which a corporation chooses to list its stock. Typically, corporate attorneys are responsible for ensuring that all SRO listing rules are followed. Review the members of your corporation’s board of directors. SEC NASDAQ rules require that a majority of each board’s directors be “independent.” This means that members of the board of directors may not have any conflicting interests (such as owning a company that the corporation does business with) that could influence the company. Appoint a committee of non-interested board members to investigate any potential conflicts of interest by another board member. SEC rules require this committee to review all transactions relating to the potential conflict and report back to the rest o
