Does NASDAQ require shareholder approval of “tax qualified, non-discriminatory employee benefit plans”?
No. Listing Rule 5635(c)(2) states that shareholder approval is not requirement for tax qualified, non-discriminatory employee benefit plans (e.g., plans that meet the requirements of Section 401(A) or 423 of the Internal Revenue Code) or parallel nonqualified plans. Please note that these plans are subject to approval by either the company’s independent compensation committee or a majority of the issuer’s independent directors. Similar plans for the company’s non-U.S. employees, which provide features necessary to comply with applicable non-U.S. tax laws, are also exempt from shareholder approval.
No. Listing Rule 5635(c)(2) states that shareholder approval is not required for tax qualified, non-discriminatory employee benefit plans (e.g., plans that meet the requirements of Section 401(A) or 423 of the Internal Revenue Code) or parallel nonqualified plans. Please note that these plans are subject to approval by either the company’s independent compensation committee or a majority of the issuer’s independent directors. Similar plans for the company’s non-U.S. employees, which provide features necessary to comply with applicable non-U.S. tax laws, are also exempt from shareholder approval.
Related Questions
- NASDAQ adopted its current rules regarding shareholder approval of equity compensation plans on June 30, 2003. Do plans adopted prior to that date require additional shareholder approval?
- Does NASDAQ require shareholder approval of "tax qualified, non-discriminatory employee benefit plans"?
- Does NASDAQ require shareholder approval of equity compensation plans?
