As a rule, an 8K submission consists of only two main parts: the name and description of the event and all relevant exhibitions. The name and description of the event contains all information that the company deems relevant to shareholders and the SEC. It is important to read this information, as it has been deemed “essential” by the company. All relevant exhibits may contain financial reports, press releases, data tables or other information referred to in the event description. Investors should always read all 8K submissions submitted by the companies in which they are invested. These reports are often critical to the business and often contain information that impacts stock prices. The SEC requires mandatory disclosure for many changes relating to the activity and operation of a registrant. Changes to a substantial definitive agreement or the bankruptcy of an undertaking must be notified. Other financial disclosure obligations include the completion of an acquisition, changes in the financial position of the business, divestiture activities and material impairments.
The SEC requires the filing of an 8-K for the delisting of a share, non-compliance with listing standards, unregistered sales of securities and substantial changes in shareholder rights. Pages 4-8 of the March/April edition of The Corporate Counsel examine how SEC employees might interpret the crucial definition of “essential final agreement” under the new 8K rules. This analysis contains comments on Alan Beller`s comments at the ABA meeting in Seattle, particularly in the area of indemnification agreements. An 8K is a report on significant unsused events or business changes that could be of importance to shareholders or the Securities and Exchange Commission (SEC). The report, also known as Form 8K, informs the public of events, including acquisitions, bankruptcies, resignations of directors, or changes during the fiscal year. Documents that meet the requirements of the Fair Disclosure Regulation (Reg FD) may be due before the expiration of four working days. An organization must determine whether the information is essential and forward the report to the SEC. The SEC makes the reports available through the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) platform. Investors can count on the fact that the information contained in an 8-K is timely. Form 8-K is used to notify investors of a recent event.  These types of events include: the 8-K form also offers considerable advantages to publicly traded companies.
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