Moderator: Dave JensenAdvisors: Ana, PG, Rich Lemert, Dick Woodward, Dave Walker Meet the Moderator/Advisors
Dick Woodward wrote:Nate:
You may want to check with an attorney who is well versed in SEC regulations. There are very strict rules about who can and cannot accept a contingency payment (aka commission)for facilitating the sale of securities in a company, or of the company itself. For example, there are people who charge a commission for raising venture money for a company. This is generally illegal unless said person is registered as a broker-dealer. As I am not an attorney, I cannot advise on your particular situation, but I do know that there are a number of regulations involving who can or cannot accept a commission for facilitating the sale of a company; some of these appear to depend upon whether the buyer is purchasing the entire company (e.g., its stock) or merely the assets of the company. In any event, I would suggest that you get a legal opinion.
Dick
Dick Woodward wrote:Nate:
It is OK to ask the investment bank and their attorney for advice, but I would strongly suggest you retain your own counsel as well. It should only cost a few hundred dollars. The investment bank has a certain conflict (they want you to do something for them) and that may color their opinion.
Note also that the broker-dealer laws apply to private as well as public companies. Trust me - you do not want to run afoul of the SEC.
In a similar case, I knew a fellow who went from company A to company B. company B had a division that competed with company A, but since he was going to a different division in company B, Company B's attorneys assured him that this would not violate his non-compete. Company A sued, and the judge held for company A, costing the fellow quite a bit of money. He might have been better served by getting an opinion from his own counsel. Thus my suggestion to you.
Good luck - I hope that things work out.
Dick
Return to Science Careers Forum
Users browsing this forum: No registered users and 14 guests