Is NASDAQs requirement for shareholder approval of equity compensation plans or arrangements applicable to initial listings?
Generally, shareholder approval is not required of plans or arrangements that are in place at the time of a company’s listing on NASDAQ. Shareholder approval is required, however, for any material amendment to such plans after listing. In addition, if the plan contains an evergreen provision, the plan cannot have a term in excess of ten years unless shareholder approval is obtained every ten years as set forth in IM-5635-1.
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 NASDAQs shareholder approval requirement for equity compensation plans or arrangements apply to foreign private issuers?
- Is NASDAQs requirement for shareholder approval of equity compensation plans or arrangements applicable to initial listings?
