July 2007 Archives
The Courts Address Rights Relating to Employer Stock
PDF version In April 2007, both the U.S. District Court for the District of Hawaii and the U.S. District Court for the District of New Jersey addressed issues relating to employer stock held in retirement plans other than employee stock ownership plans (ESOPs). Although neither case addressed ESOP issues specifically, the decisions in both cases affect all plans holding employer stock.
Presto: A New Test for Inadvertent Investment Companies
PDF version Investment company status cases are few and far between, and have generally been decided at the lower-court level. Recently, the Seventh Circuit visited the issue in SEC v. National Presto Industries (Presto) [1] and added a new gloss to the SEC’s historical interpretation of what it means to be “primarily engaged” in the investment company business.