Stroock Special Bulletin
"JOBS Act: Crowdfunding and Other Provisions Aim to Ease Regulatory Burden for Smaller Companies"
On April 5, 2012 President Obama signed into law the Jumpstart Our Business Startups Act (the "JOBS Act"). This legislation, which Congress overwhelmingly passed, makes it easier for smaller companies to raise public money and frees them from certain disclosure requirements under Federal securities laws. The JOBS Act also makes other significant changes applicable to many other public companies, including increasing the availability of a simplified registration process for securities offerings, increasing the number of shareholders an issuer is able to have before it is required to register its securities, and eliminating the ban on general solicitation or general advertising in certain private placements of securities.