Year-2000 bug may create securities law risks... directors and officers of public companies that do not disclose and fix date glitch face liability

Article Abstract:

Officials of public companies should plan and carefully document their year-2000 remediation programs, for failing to do so can provoke annoyance and even litigation from shareholders. Companies which have to cut operations because of the problem may suffer damage to their corporate reputation in addition to their sales. Companies which wish to take advantage of the business judgment rule in year-2000 litigation may need a record that they consulted with appropriate experts. The company's directors' and officers' liability policy should also be reviewed.

Management, Planning, Corporate directors, Year 2000 transition (Computers), Corporate officers

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The SEC's new investor-fairness rules, intended to afford the small investor the price opportunities of institutions, could result in reduced competition

Article Abstract:

The Securities and Exchange Commission should seek ways to more strictly enforce current regulations rather than impose the new ones it proposes in its 'investor fairness' rules. In an effort to give retail investors parity in the marketplace they are now perceived as lacking, the SEC would amend the Quote Rule and require publication of exchanges' and market-makers' quotations. These changes will stifle competition while affording little improvement and risking considerable harm.

Investors

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The proposed extension of the 'suitability doctrine,' whether or not limited to governmental investors, could be unnecessary to achieve accountability

Article Abstract:

Expanding the suitability doctrine for governmental investors would only complicate the issue and weaken policy goals. Some have called for such an extension after the Orange County, CA debacle. Currently, if an investor relies heavily on the advice of a broker, or if that broker makes buying decisions, the broker is required to inform investors as to the suitability of their investments. Such a straightforward and fair concept should not be clouded.

Fiduciary duties, states

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