Smaller Reporting Company Alliance Created to Service Needs of Smaller Reporting Companies

by Craig Butler on March 7, 2010

Organization formed to meet the unique needs of smaller reporting companies, which are not currently being serviced by existing media and other sources

Directors and executive officers of smaller reporting public companies receive all the same various publications and e-mails related to new rules and regulations promulgated by the Securities and Exchange Commission that larger public reporting companies receive, and most have the same question:  How does this affect my company?

It is no secret that most organizations, including large law firms and trade organizations, that publish announcements related to new rules or regulations promulgated by the SEC do so to attract the attention of larger public companies (accelerated filers) and, therefore, the content does not address how the new rules and regulations affect smaller reporting companies.  It is also no secret that many larger law firms, accounting firms, consulting firms and investor relations firms do not represent smaller reporting companies, or if they do, they do not meet their informational needs since they have larger clients on which to focus their attention.

With this premise in mind, The Lebrecht Group, APLC created the Smaller Reporting Company Alliance (SRCA).  SCRA has multiple objectives, with the primary one to be a one-stop shop for officers and directors of smaller reporting companies.  A place where they can come to the website and stay informed of new rules and regulations and the impact they will have on their companies.  Additionally, the directors and officers will have the ability to ask service providers that service smaller reporting companies questions related to things that impact their companies; as well as find a variety of service providers if they are looking for a particular provider for their company, such as an attorney, auditor, CFO consultant, investor relations firm, and many others.

In addition to serving as a valuable resource for smaller reporting companies, the SCRA will be a way for service providers that service smaller reporting companies to stay on top of recent regulations in the industry and get connected with other service providers in the same market space.

The SCRA has two types of members:  Company Members and Provider Members.  Company Members are smaller reporting companies as defined under the Securities Act of 1933, as amended, or those companies interested in becoming smaller reporting companies.  Any smaller reporting company can become a Company Member.  The identity of Company Members will be kept confidential, unless the members wish to disclose their identity to other SCRA members.  Provider Members are the various service providers that service smaller reporting companies, such as attorneys, auditors, consultants, and investor relations firms.  The Provider Members will be public and those members will provide content, answer questions, and will be known to the Company Members.  Provider Members must apply to become members and will have certain ongoing requirements to remain a member primarily related to supplying content relevant to smaller reporting companies.

If you are interested in learning more about SCRA or becoming a Company Member or a Provider Member, please visit the website (www.smallerreportingcompanyalliance.com).

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The Lebrecht Group, APLC provides comprehensive advice on a variety of corporate and securities law matters.  Please contact us if you have any questions.

Craig V. Butler, Esq. is an attorney with The Lebrecht Group, APLC, located in Irvine, California and Salt Lake City, Utah. He can be reached at (949) 635-1240 or via e-mail at cbutler@thelebrechtgroup.com with questions or comments. Please visit our website at www.thelebrechtgroup.com for future updates and other information.

 

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