Legislation has been introduced in the House that would increase the 500 shareholder threshold for SEC reporting to 1,000 and exclude “accredited investors” from being counted toward that limit.
The bill is actually short. You can read it below. It is great that efforts are being made in Congress to make life easier for companies. Now if Congress would just fix the problematic provisions of Dodd-Frank which made it harder to qualify as accredited and conduct all accredited 506 offerings, and allow general solicitation, repeal Section 409A, and reverse the presumption on Section 83(b) elections….
For great, more detailed blog coverage of this proposed bill, see Jim Hamilton’s blog article on this from yesterday.