Corporate Law Week 7 Draft Letter

User Generated

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Business Finance

Corporate Law

Southwestern College

Description

Your firm represents Booz Allen Hamilton Holding Corp (BAH), a publicly traded corporation listed with the NY Stock Exchange. The company wishes to invest in some expansion of operations. To this end, each of the corporate officers and members of the board of the directors are willing to defer 50% of their compensation in the coming year in exchange for the equivalent amount of preferred stock at the valuation of $15 a share, which is significantly lower than what the stock has been trading at lately. Your managing partner has asked you to draft a SOX Compliant disclosure letter to shareholders concerning this proposal.

Your memo should be 2-3 pages in length. Cite any applicable statutes referenced in the letter per Harvard Blue Book.

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Explanation & Answer

Attached.

Running head: SOX COMPLIANT DISCLOSURE

1

Employees’ Preferred Stock SOX Complaint Disclosure

To: Shareholders
From: Booz Allen Hamilton Holding Corp (BAH)
Following our decision to invest in expansion operations, it’s now evident that we do not
have sufficient funds to fund such expansion and would have to rely on other means to raise the
needed funds. To address this, each of the corporate officers and members of the board of
directors are willing to differ 50 percent of their compensation in the coming year in exchange
for an equivalent amount of preferred stock at the valuation of $15 a share, which is significantly
lower than what the stock has been trading at lately. With the current arrangement to raise the
required funds, its essential for the company to disclose this information t...


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