The SEC is scheduled to meet on May 22, 2006 to review and possibly adopt the recommendations.
The recommendations include:
a. Defining a group of smaller public companies as smallcap companies to include smallcap companies with less than $787 million market capitalization, and microcap companies with less than $128 million market capitalization. The measurement of market capitalization would take place on the last day of a company’s fiscal year.
b. Providing exemption from Section 404 compliance to microcap companies with less than $125 million in annual revenues.
c. Providing exemptive relief from external auditor involvement in the Section 404 process to smallcap companies with less than $250 million in annual revenues.
There is no timetable on the adoption of the recommendations.
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