SEC Issues Corporate Website Guidance

The following post comes to us from Ning Chiu and Michael Kaplan of Davis Polk & Wardwell.

The Securities and Exchange Commission has issued an interpretive release on the use of corporate websites by public companies. The release provides a means of complying with Regulation FD through posting information on websites in certain circumstances, and also gives additional clarification as to the use of websites for providing other information to investors. While we do not expect the release to lead to significant changes in practice for most companies, it presents a valuable opportunity for companies to revisit their website-related practices.

Our memorandum, available here, explains the circumstances under which information posted on a company’s website will be considered “public” for purposes of Regulation FD and factors companies should consider in determining whether to alter their practices for disseminating information in view of the SEC’s new guidance. The interpretative release may be accessed here.

The SEC is soliciting comments on issues concerning corporate use of technology in providing information to investors. Comments are due on or before November 5, 2008.

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