Overhaul of initial and ongoing requirements also includes new market cap minimums
OTC Markets Group, which operates the OTCQX trading venue, has upped its governance requirements for US companies and banks.
From January 1, 2016, when the new rules come into effect, US companies must have at least two independent directors on their board, maintain an audit committee dominated by independents and give investors their annual financial reports at least 15 days ahead of yearly shareholder meetings.
The group notes that most US companies already fulfil these obligations.
OTC has also updated its listing requirements for US and international companies in the areas of bid prices, market capitalization and operating history to better align them with state and regulatory standards.
‘The introduction of strengthened OTCQX eligibility requirements combined with new common sense, best practice corporate governance standards for US companies and banks further distinguishes OTCQX as a trusted public market,’ says Cromwell Coulson, CEO of OTC Markets Group, in a press release.
Read the changes in full here.