Any company with a billion a year income doesn't need a pass on Dodd-Frank. Those companies are already well established and employ the employees they need. This act is a giveaway to Wall Street. It will create more spin off companies of existing corporations and will provide SHELTER from laws.
...introducing a new category of publicly-held companies known as an “emerging growth companies”, the bill seeks to exempt businesses with under $1 billion in revenue from certain regulations associated with going public. Notably, companies governed under this category only need to produce two years of audited financial statements when filing for an IPO (normal rules require three years); they are exempted from Dodd-Frank rules giving shareholders a non-binding vote on executive compensation; and are freed from the requirement of hiring an outside auditing firm to check internal financial controls....
The exact words from the bill:
… the SEC and any registered national securities association from adopting or maintaining any conflict-of-interest rule or regulation in connection with an initial public offering of the common equity of an emerging growth company that restricts: (1) which associated persons (based on functional role) of a broker, dealer, or member of a national securities association may arrange for communications between a securities analyst and a potential investor; or (2) a securities analyst from participating in any communications with the management of an emerging growth company that is also attended by any other associated person of a broker, dealer, or member of a national securities association whose functional role is other than as a securities analyst.
It removes portions of The Sarbanes-Oxley Act (click here)
The bill seeks to be POPULOUS by turning 'crowd funding' into a commodity. Does Crowd Funding really need to becomes a commodity? Crowd Funding is, in many instances, tax deductible and not a commodity.
In my opinion, the bill victimizes Crowd Funding and seeks to affiliate Wall Street IPOs with these opportunities. I do not believe any company sprouting out of Crowd Funding needs an IPO, quite the opposite actually. Crowd Funding is a trust relationship and not one of opportunity. That is unique and should not be destroyed. Wall Street just can't leave it alone, can they?
It changes reporting as if a company doesn't have to have an accounting department or firm to keep balance sheets. Amazing.
There are only one or two aspects of The JOBS Act that actually are worthwhile. I suggest the Senate 'break it down' and pass the ONE provision worthwhile and that is raising the requirements of a company with 500 investors to 2000 investors before going public. It is THE ONLY provision of the bill worth passing!
In a second WHIMP OUT by the Republicans the "STOCK" Act is watered down and it is the only version the Senate Republicans will consent to pass.
...Reid and McConnell (click title to entry - thank you) want to move forward on the House version of the legislation. Two significant provisions were dropped by the lower chamber, angering some Democratic and Republican lawmakers in both chambers. The House also expanded the bill to cover executive branch agencies.
One deleted provision would require “political intelligence consultants” firms to register, bringing new transparency to a shadowy yet booming sector of the Washington influence industry. This provision was sponsored by Sen. Chuck Grassley, and the Iowa Republican, along with Sen. Patrick Leahy (D-Vt.), are fighting to restore it.
The House also scrapped Senate-passed language to expand federal prohibitions against bribery, theft of public money and other public corruption offenses. That provision was authored by Leahy (D-Vt.) and John Cornyn (R-Texas).
Upset over the House moves, Grassley, Leahy and other senators have pressed Reid and McConnell to set up a House-Senate conference committee to review the bill — a move that would allow the senators to push their House colleagues to restore the amendments...
