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06-10-2003, 06:00 PM
Business Roundtable Objects To A Provision Of The SEC Rule Governing Rules of Conduct For Attorneys
The Business Roundtable, an association of CEO’s, state in a letter to the SEC:
“At the same time it adopted the final rules, the Commission extended the comment period for proposed rules that would impose withdrawal and "reporting out" obligations on attorneys who do not believe a client's board of directors has responded appropriately to evidence of misconduct. The Commission also proposed an alternative approach that would require a company - rather than its attorney - to file a report on Form 8-K disclosing that the attorney has withdrawn or stopped participating in a matter for professional reasons.
We appreciate the Commission's recognition of the controversial nature of its "noisy withdrawal" proposal and the need for additional time for comments. As we stated in our initial comment letter, we have serious concerns about the noisy withdrawal proposal. We also have concerns about the alternative Form 8-K proposal and the impact it could have on public companies. Specifically, we believe either proposal would undermine the relationship between attorneys and their organizational clients and deter officers, directors and employees from seeking advice from counsel on sensitive matters. “
Click here to review CEO’s comments:
http://www.sec.gov/rules/proposed/s74502/brt040803.htm
The Business Roundtable, an association of CEO’s, state in a letter to the SEC:
“At the same time it adopted the final rules, the Commission extended the comment period for proposed rules that would impose withdrawal and "reporting out" obligations on attorneys who do not believe a client's board of directors has responded appropriately to evidence of misconduct. The Commission also proposed an alternative approach that would require a company - rather than its attorney - to file a report on Form 8-K disclosing that the attorney has withdrawn or stopped participating in a matter for professional reasons.
We appreciate the Commission's recognition of the controversial nature of its "noisy withdrawal" proposal and the need for additional time for comments. As we stated in our initial comment letter, we have serious concerns about the noisy withdrawal proposal. We also have concerns about the alternative Form 8-K proposal and the impact it could have on public companies. Specifically, we believe either proposal would undermine the relationship between attorneys and their organizational clients and deter officers, directors and employees from seeking advice from counsel on sensitive matters. “
Click here to review CEO’s comments:
http://www.sec.gov/rules/proposed/s74502/brt040803.htm