June 23, 2020
On June 19, 2020, the SEC issued an exemptive order that superseded a prior order issued on March 25, 2020 (Prior Order) that provided funds and business development companies (BDCs) relief from the in-person board meeting requirements of the 1940 Act and certain rules thereunder as a result of the impacts of COVID-19 (Order). The relief permits boards of funds and BDCs to continue to hold telephonic and other types of virtual board meetings in lieu of in-person meetings in recognition of the challenges board members currently face in travelling to the locations of in-person meetings. The Order extends the time period for the relief of the Prior Order through at least December 31, 2020. The date on which the Order expires will be two weeks from the date of a future notice from the SEC.
The Order incorporates the same conditions of the Prior Order for a fund or BDC to rely on the Order, which require that: (i) a virtual board meeting is necessary or appropriate due to circumstances related to the current or potential effects of COVID-19; (ii) the board members can participate in the virtual board meeting using a means of communication that allows them to hear each other simultaneously; and (iii) the actions taken at virtual board meetings held in reliance on the Order are ratified by the board, including a majority of the independents, at the next in-person board meeting.
The Order and related press release are available at the links below:
Please Click Here
Please Click Here
October 24, 2024
October 9, 2024
October 8, 2024
September 12, 2024
September 11, 2024
September 6, 2024
August 29, 2024
August 27, 2024
August 22, 2024
August 5, 2024
July 29, 2024
The opinions expressed are those of the author(s) and do not necessarily reflect the views of the firm or its clients, or any of its or their respective affiliates. This article is for general information purposes and is not intended to be and should not be taken as legal advice.
One Battery Park Plaza
New York, NY 10004
Phone (212) 574-1200
Fax (212) 480-8421
901 K Street, NW
Washington, DC 20001
Phone (202) 737-8833
Fax (212) 480-8421
Contact Us
General/Media Inquiries – info@sewkis.com
Legal Recruiting – recruiting@sewkis.com
Staff Recruiting – hr@sewkis.com
© 2024