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MAKING SENSE OF DODD-FRANK

The Dodd-Frank Act has broad and deep implications that will touch every corner of financial services and multiple other industries. This site, developed and maintained by attorneys at Stinson Leonard Street, is dedicated to making sense of this complex legislation and helping businesses understand how it will affect them specifically. Our Bloggers ยป

Dodd-Frank

SEC Commissioner Supports Mandatory Shareholder Arbitration

by   |   July 18, 2017

Reuters is reporting that SEC Commissioner Michael Piwowar urged IPO companies to request relief from the SEC to include mandatory arbitration provisions for shareholder disputes. Commissioner Piwowar apparently made the comment in as yet unpublished remarks during an appearance at the Heritage Foundation.

In 2012, Carlyle reportedly dropped a mandatory arbitration provision from its IPO documents after pressure from the SEC.

Mandatory arbitration is seen as a means to stop frivolous shareholder class action law suits.