Concept Release- Disclosure Effectiveness Initiative Part 5-Securities of the registrant SEC reporting, securities regulation

1. CONCEPTRELEASE: BUSINESSAND FINANCIALDISCLOSUREREQUIREDBY REGULATION
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183 SEC shouldretainitem201(b)(1)
184 What trulymatterfor the investing publicisnotthe streetname andbeneficial ownerbutthe personwhois
makingthe investmentandvotingdecision. Itwill notmake sense toprovide streetname numberwhen
beneficial ownersare makingall the investmentandvotingdecisionsbehindcloseddoors. The utilizationof
thisdata by the investmentpublicdetermines whatisinthe bestinterestof the investmentpublic. This
informationwassupposedtocommunicate somethingtoitsreadersthatthingmaybe the numberof
decisionmakers. Requiringregistrantstoprovide the numbersof beneficiaryownerswill be clearlytoo
difficulttoobtainbecause of the bindingcontractual agreements. Inadditionitwillnotprovide the target
benefit. Ibelievethatthe registrantmustdisclose the numberof beneficiaryownersthatmeansinvestors
whomake acquisitionof sharesthemselveswithphysical certificateorthroughDRS (directregistration
system) andalsothe numberof streetname owners. Once investorempowerssomeoneelsetomake
investmentandvotingdecision,the disclosure of empoweredinvestorsnumberwill addmore qualitytothe
disclosure.
185 Both sophisticatedinvestorsandaverage reasonable investorswillfindthisinformationuseful butitisstill
confusing
186 The informationabouttermsandconditionsare furnishedtopotential investorsinthe secondarymarket.
The article of incorporationandBylawsare veryimportantinformationinvestorsshouldreadandrelyon. I
am not sure that theypreferthe one filedasexhibitorthe otherpostedonline (companywebsite). Butthey
shouldrelyonthe one filedasexhibittothe registrationForm10-Kbecause itsrequiredreviewiseasily
arguable.
187 SEC shouldrequire registrantstoprovide item202 disclosure eachyearin Form10-K. Investorsneeditmore
aroundthat time not justto make investmentdecisionbutalsotomake votingdecision. All material
changesshouldbe disclosedintheirquarterlyandannual reports. Thisinformation helpsinvestors
understandthe registrantP/Eratioand itsdividend(payout,retained,…). Form8-Kis servingitspurpose
sufficientlywiththisinformation.
188 Average reasonableinvestorsvaluemore thisinformation
189 Thisinformationisone of the cheapestinformationforthe registrant. Itdoesrequire notenough effortwith
actual automatedtechnologysystem
190 The benefitsof providingthisdisclosure are nothuge butitdoeshelpinvestorsunderstandhow
managementandBoDmanage the registrantequity
191 SEC shouldretainitem701 (a)-(e),Ibelievethatthe past3 yearstrendof all salesof unregisteredsecuritiesis
a good informationtothe investingpublicaboutthe registrantprivate placement
192 Item3.02 focusesonsale of equitysecuritiesintransactionthatisnotregisteredunderthe SecuritiesAct.
And,the amountof the equitysecuritiessoldinthe company’slastreportfiledunderthisitemorlast
periodicreportwhicheverismore recentconstitutesmore than1% of the company’soutstandingsecurities
of thatclass. Grants of stock optionpursuanttoan employee stockoptionplanare excludedfromthis
disclosure.Whileitem701disclosure focuseson all salesof unregisteredsecuritiessoldbythe registrant
withinthe pastthree years. Inaddition,Ido notknow the appropriate thresholdhere. Butit isnot justa
matterof threshold;itisalsoaboutaggregate quarterlyandannual reports.
193 It will make sense torevise the rule torequire disclosure of all unregisteredsalesof securitiesduringthe
reportingperiod. Simplyrequiringacrossreference toform8-K will create problembecause of itsthreshold.
I am afraidthat we have to informinvestorsabout1percentor lessof the numberof sharesoutstandingof

2. the equitysecuritiesbeingsold
194 SEC shouldnotremove the item701. Atthe same token,we cannot require registranttofile form8-Kevery
time theywill sell asmall amountof shares;we shouldkeepthe waythingsare. We cannotaffordto
eliminateitem3.02,it isa good informationaboutthe registrant’sprivate placement
195 Whenit comesto changingof locations,Iwantto read theirargumentsbecause itwill add alotof pagesto
item7, somethingIhave some reservationtodo
196 I do notbelieve thereisalot of challengestocomplywiththese itemrequirements
197 I will discontinue item701 f disclosure,SECshouldrevise item701f to add quality andattractivenesstoit
198 If the actual use of proceedsdiffersmateriallyfromthe descriptionof the offeringandcomesfromoffering
transactions,we mustrelocate thisdisclosureinthe MD&A may be
199 Item703 isveryimportantto investors. Itmustbe roomsfor enhancementof the repurchase disclosure.
200 SEC shouldrequire anenhanceddisclosure of the repurchase of aregistrantequitytodiscussitsimpact on
leverage,EPS,…
201 Item703 providesagooddiscussionaboutrepurchase score. The benefitforinvestorsistoassessthe
repurchase programand understanditif itwas inthe bestinterestof the CEO,attractivenesstorating
analystsor/andshareholdervalue maximization
202 Disclosure of all repurchasesof securitiesduringaregistrantfiscal quarterisveryimportanttoinvestorswho
relyon EPSto make investmentdecision. There isnoreasontodisclose anon-material programsothe SEC
can set some thresholdtriggeringamaterial disclosure
203 Item703 quarterlyreportrequirementisappropriate
204 I do notbelieve averagereasonable investorneedsrepurchase informationpromptlybutif SECdecidesto
require repurchase onForm8-K,it has tofocus onhighthresholdinorderto reduce the cost of disclosure for
the registrantandincrease materialityof the disclosure thatmeans addingqualityand attractiveness tothe
disclosure.