25 Oct 2022
Memorandum: Obligations of Directors and Officers under Section 16
Section 16 of the Exchange Act imposes certain filing obligations on company “insiders” (such as officers and directors) relating to their acquisition and disposition of company securities, as well as certain prohibitions against short sales of company securities, and requires disgorgement of short-swing profits. Use this template to draft a memorandum to the directors and officers of a public company advising them of their obligations under Section 16 with respect to their ownership of and transactions in the company's securities.
Related Content
- Section 16 Forms: Guidance for Completing, Filing, and Amending
Make sure your client’s Section 16 forms are in order and timely filed.
- Section 16 Compliance, Insiders, and Liability
Get an overview of the obligations and risks insiders face.
- Power of Attorney (To File Forms 3, 4 and 5 under Section 16(a))
Draft this power of attorney to get permission to file these forms on behalf of insiders.
- Section 16(b) Exemption Flowchart
Refer to this flowchart as a quick check of whether a transaction must be reported.
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