The JOBS Act of 2012
April 24, 2013
One of the most significant changes in U.S. Securities Laws was passed into law on April 5, 2013. Under the JOBS (Jumpstart Our Business Startups) Act, among other things:
- the ban prohibiting general solicitation of accredited investors in connection with a private placement will be lifted;
- crowdfunding will enable businesses to solicit a larger number of smaller investments from the public (not just accredited investors); and
- the number of shareholders that a company may have before it is obligated to file Securities and Exchange Commission reports (and access private capital, longer)has been increased.
Some aspects of the JOBS Act have already taken effect; others are awaiting necessary regulations, which we believe will happen soon now that Mary Jo White has been confirmed as Chair of the SEC.
Levenfeld Pearlstein has been studying the JOBS Act since before its passage and has been advising clients on how it can be used to their advantage. In this Dow Jones article, one of our bankruptcy partners, Jonathan Friedland, comments on some of the impact the JOBS Act may have on sophisticated commercial bankruptcy practice.