Reward Work Act

Hozzl · 2022-02-08T23:23:05Z

Explore the details of Senate Bill 3540 Reward Work Act currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Finance and Financial Sector. Stay informed on legislative developments.

2/8/2022, 11:23 PM

Congressional Summary of S 3540

Reward Work Act

This bill revises provisions related to stock buybacks.

An issuer of securities may not purchase its own securities on a national exchange if the issuer has (1) received specified financial assistance related to the COVID-19 (i.e., coronavirus disease 2019) pandemic, and (2) repurchased more than $1 billion worth of its own securities in the last five years. Additionally, one-third of such issuer's board of directors must be elected by employees for the issuer to be allowed to register securities.

The bill also repeals the Securities and Exchange Commission regulation (Rule 10b-18) that generally provides a safe harbor from market manipulation liability for an issuer engaging in a stock buyback.

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Current Status of Bill S 3540

Bill S 3540 is currently in the status of Bill Introduced since March 19, 2020. Bill S 3540 was introduced during Congress 116 and was introduced to the Senate on March 19, 2020. Bill S 3540's most recent activity was Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. as of March 19, 2020