This bill expands the information allowed when calculating whether an acquisition or disposition of a subsidiary is significant for purposes of required financial disclosures by publicly traded companies. Currently, an acquisition or disposition is considered significant when the company's investment in the subsidiary is calculated to exceed 10% of the aggregate worldwide market value of the company's voting and non-voting common equity. Under the bill, this market value may additionally include applicable trading value, conversion value, or exchange value of all of the company's outstanding classes of stock, including preferred stock and non-traded common shares that are convertible into or exchangeable for traded common shares.
To permit an issuer, when determining the market capitalization of the 
 issuer for purposes of testing the significance of an acquisition or 
     disposition, to include the value of all shares of the issuer.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. AVOIDING ABERRATIONAL RESULTS IN REQUIREMENTS FOR 
              ACQUISITION AND DISPOSITION FINANCIAL STATEMENTS.

    The Securities and Exchange Commission shall revise section 210.1-
02(w)(1)(i)(A) of title 17, Code of Federal Regulations, to permit a 
registrant, in determining the significance of an acquisition or 
disposition described in such section 210.1-02(w)(1)(i)(A), to 
calculate the registrant's aggregate worldwide market value based on 
the applicable trading value, conversion value, or exchange value of 
all of the registrant's outstanding classes of stock (including 
preferred stock and non-traded common shares that are convertible into 
or exchangeable for traded common shares) and not just the voting and 
non-voting common equity of the registrant.
                                 <all>
To permit an issuer, when determining the market capitalization of the issuer for purposes of testing the significance of an acquisition or disposition, to include the value of all shares of the issuer.
To permit an issuer, when determining the market capitalization of the issuer for purposes of testing the significance of an acquisition or disposition, to include the value of all shares of the issuer.
Official Titles - House of Representatives
Official Title as Introduced
To permit an issuer, when determining the market capitalization of the issuer for purposes of testing the significance of an acquisition or disposition, to include the value of all shares of the issuer.
Rep. Hill, J. French