NYSE Extends COVID-19 Relief Through September 30

On July 2, 2020, the Securities and Exchange Commission (SEC) extended the New York Stock Exchange’s (NYSE) temporary relief on shareholder-approval requirements for listed companies from June 30, 2020, to September 30, 2020. As Capital Markets & Securities Law Watch discussed earlier this year, in April, the NYSE had proposed relaxing the shareholder-approval requirements under Section 312.03 of the Listed Company Manual (the Manual) relating to “related parties” issuances and private financings. The NYSE recognized that gathering shareholder approval could be a substantial burden for companies needing new capital immediately in response to the effects of COVID-19. The original relief waiver went into effect in April, and over the past several months, many listed companies have completed capital-raising transactions that would not have been possible with shareholder-approval requirements.

The SEC approved the NYSE’s extension request with immediate effect through September 30, 2020, and commented that “these temporary emergency waivers would simply continue to provide NYSE listed companies with the flexibility on a temporary emergency basis to consummate transactions without shareholder approval that would not require shareholder approval under the rules of the NASDAQ Stock Markets, as the specific limitations the [NYSE] is proposing to waive do not exist in the applicable NASDAQ rules.”

Capital Markets & Securities Law Watch will continue to monitor any additional relief offered by national exchanges to listed companies impacted by COVID-19.

View all of our COVID-19 perspectives here. Contact a member of our COVID-19 Legal Task Force here.