Developments in Securities Regulation, Corporate Governance, Capital Markets, M&A and Other Topics of Interest. MORE

On November 8, 2012, the SEC rejected a motion to stay the resource extraction rules pending outcome of litigation challenging the validity of the rules.  The SEC gave the following reasons:

  • Movants have failed to demonstrate imminent, irreparable harm;
  • Movants have not demonstrated a likelihood of success on the merits; and
  • Other equitable considerations counsel against the issuance of a stay;

The SEC issued a stay of the proxy access rules when Rule 14a-11 was challenged.  In that case the SEC noted a stay avoids potentially unnecessary costs, regulatory uncertainty, and disruption that could occur if the rules were to become effective during the pendency of a challenge to their validity.

The resource extraction rules do not require issuers to file a Form SD until 150 days after the first fiscal year ending after September 30, 2013.  So perhaps the long implementation horizon is partly determinative.

The conflict mineral rules also have a long implementation timeline.  Given the result with the resource extractions rules, it seems easy to predict the SEC will not stay the conflict minerals rules either.

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