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SEC approves changes in corporate governance requirements for companies
listed in the NYSE

On November 24, SEC approved a few changes to the corporate governance requirements for companies listed in the NYSE, including those with ADR programs, laid down by Section 303A of the NYSE Listed Company Manual.

All the changes come into force on January 1, 2010, with some of them important and others meant to eliminate red tape.

The main changes are:

• Allow greater use of the Company’s website as a communication tool (instead a the proxy statement or 20F annual report) to disclose, among others, the name of officer elected as chairman of the Board of Directors and the procedure adopted so that shareholders can contact him or other Board members;
• Listed companies will no longer be required to mention in their proxy statement or annual report that printed copies of the documents relating to corporate governance practices available on the website will be provided to any shareholder upon request;
• Companies no longer have to mention in their annual report that the CEO has submitted the declaration that the company has complied with all the corporate governance obligations of the NYSE and that the company sent the declarations from the CEO and CFO required by SEC;
• CEOs are now required to notify the NYSE in writing of any noncompliance by the company with NYSE’s corporate governance requirements;
• Companies should establish a communication channel so that not only the shareholders but also anyone interested can directly contact the chairman and the independent members of the Board of Directors;
• The transition period for recently listed companies to adapt to the corporate governance regulations of the NYSE has been altered.

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