JBDI Holdings Relies on Home Country Rule for Nasdaq Governance Exemption
JBDI Holdings Limited has filed a Form 6-K to announce its election to rely on the home country rule exemption under Nasdaq Listing Rule 5615(a)(3). This exemption allows the company to follow its home country's corporate governance practices instead of certain Nasdaq requirements. Specifically, JBDI will be exempt from Nasdaq Listing Rule 5635, which mandates shareholder approval for various securities issuances, including those related to acquisitions, equity compensation, and change of control. The company's Cayman Islands counsel has confirmed this compliance under local law. Apart from this exemption, JBDI's corporate governance practices align with Nasdaq's requirements for domestic U.S. companies.
Key Highlights
- JBDI Holdings Limited elected to rely on the home country rule exemption under Nasdaq Listing Rule 5615(a)(3).
- The company will be exempt from Nasdaq Listing Rule 5635 regarding shareholder approval for securities issuances.
- Cayman Islands counsel confirmed that under Cayman Islands law, the Company is not required to comply with these Nasdaq requirements.
- No significant difference exists between the Company's corporate governance practices and Nasdaq requirements, except for the stated exemption.
Price Impact
More from JBDI
More in Corporate Governance