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defining "small company" registrants?

(Respondents are

directed to the discussion contained in Part II, B. of this release.)

1. To what extent, if any, are existing criteria for classification useful in defining "small company"

registrants?

2. To what extent must the Commission utilize any or all of the criteria specified in Section 12(h) of the Securities Exchange Act?

3. Should the Commission utilize criteria in

addition to those specified in Section 12(h) and, if so, what

criteria?

C.

Assuming that the Commission can reasonably define

a class or classes of "small business" registrants, and that differentiation of the reporting obligations can be justified, what reduction of reporting obligations should be considered? (Respondents are directed to the discussion contained in

Part II, C. of this release.)

1. How and to what extent can the contents of the following reports be modified in order to reduce their

burden upon "small company" registrants:

a) Form 10-K under the 1934 Act

[blocks in formation]

2. Should the Commission consider relieving

"small company" registrants from the obligation to:

a) File financial statements prepared in

compliance with Regulation S-X in any or all of the reports

required to be filed under the 1934 Act?

No. 14?

b) Disclose segment data pursuant to FASB

CHAPTER XVIII

DISSEMINATION OF INFORMATION

RECOMMENDATIONS:

Regarding Dissemination of Filings with the Commission:

The Commission should convert its filing system from a statutory reporting basis to a company basis and should maintain a "current file" for each Exchange Act reporting company containing the company's latest Form 10-K annual report and all subsequent filings, excluding exhibits, under the Securities Act and the Exchange Act.

The Commission should require public companies to
make their filings with the Commission under the
Exchange Act available to the public upon request.
Regarding Disclosure to Holders of Debt Securities:
The Commission should be sensitive to the informa-
tion needs of holders of debt securities and, if
information deficiencies are identified, corrective
action should be undertaken.

The Commission should assure that all company re-
ports available to equity holders are available
to debt and warrant holders if requested.

A.

Introduction

Although the interviews with analysts and the results

of the individual investor survey indicate that filings

with the Commission are not the primary source of information about a company for most users, filings are used by many to confirm information already obtained elsewhere and to acquire more detailed information than is available elsewhere.

The Committee believes that although dissemination of information by the Commission is not the Commission's primary function, it is appropriate for the Commission (1) to create and maintain a comprehensive and readily accessible reservoir of information for those shareholders and others who wish to use it; and (2) wherever reasonably possible, to enhance the ability of all interested persons to obtain this information, either from the preparer or from the Commission. The Committee believes that improvements are possible in both of these areas.

B.

Converting the Commission File System to a Company Basis At the present time, Commission maintained company filings are segregated according to the act pursuant to which the filing has been made. Thus, the Securities Act registration statement filings are in one file, and the Exchange Act periodic reports are in another.

This filing-by-act is inconvenient and unnecessary. Even sophisticated users are far more likely to seek filings by company, rather than by act. Accordingly, the Committee recommends that the Commission convert its present filing

system to a "company basis." This would result in the
file for "COMPANY ABC" containing in the order of filing,
annual reports on Form 10-K, quarterly reports on Form

10-Q, current reports on Form 8-K, proxy statements, Schedule
13(d) reports and filings under the, 1933 Act. Not only will
a "company basis" file permit more expeditious access to
Commission files by the public and by the Commission's
staff but perhaps, because of the elimination of multiple
file numbers, it might be easier to maintain.

Consideration should also be given to maintaining

a current file on each registrant. This would entail maintenance of a separate docket or folder which would include filings made by a company during the last year (i.e., the most recent Form 10-K and all filings under the 1934 and the 1933 Act made since that time). This current file will be much more convenient for members of the public because it will no longer be necessary to look through several different files to get current information about a company. The Committee was not able to assess the feasibility of this procedure, and accordingly its method of implementation has been left to the discretion of the Commission.

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