Last week, Compliance Week reported that a sample of 2000 proxies showed that 47 percent of companies disclosed in their proxies that at least one director of officer filed a late “insider trade” under Section 16(a) of the Securities Exchange Act of 1934.
Promulgated by Section 403 of The Sarbanes-Oxley Act, the rules require that insider trades—transactions that are reported on Form 4—be filed within two business days of the reportable event; prior to the passage of the Sarbanes-Oxley Act in 2002, insiders had 10 business days after the end of the month in which the trades occurred to file.
