SEC Proposal: Increasing the number of shareholders required for company registration

In another of a series of bills designed to loosen SEC regulations, a House Republican has introduced a bill that would increase the threshold of shareholders required for a company to register with the SEC. Rep. Dave Schweikert, R-Ariz., has introduced the Private Company Flexibility and Growth Act, HR 2167, which would require that a company have 1,000 or more shareholders before it filed its securities offering with the SEC. That number would not include accredited investors or people who received the securities through employee compensation plans. The bill was referred to the House Financial Services Committee. 

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