Equity Compensation Startup | Federal Securities Exemptions

ARTICLES

Don’t forget Rule 701: the exemption for employees and consultants

January 5, 2012

Attorneys who help startups obtain financing are intimately familiar with the most commonly-used exemptions in the federal securities laws--especially Regulations A and D.  This article highlights a lesser-used, but still important, exemption--Rule 701, which applies to compensatory equity awards given to employees and consultants.  The article also draws key lessons and rules of thumb for companies who might end up using this exemption. 

- Summary by FizzLaw Team

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Don’t forget Rule 701: the exemption for employees and consultants

AUTHOR

Ken Priore

Ken Priore