What happens if a company no longer complies with the audit committee composition requirement because an audit committee member resigns?
Pursuant to Listing Rule 5605(c)(4), if an audit committee member resigns and the company is not otherwise relying on a cure period for its audit committee membership, the company has until the earlier of the next annual shareholders meeting or one year from the date of resignation to replace the audit committee member; provided, however, that if the annual shareholders meeting occurs no later than 180 days following the resignation, the company shall instead have 180 days from such resignation to regain compliance. A company relying on this cure period must provide notice to NASDAQ immediately upon learning of the resignation.
Related Questions
- What notification is required to be given to NASDAQ if a company no longer complies with the audit committee composition requirement of Listing Rule 5605(c)(2)(A)?
- What notification is required to be given to NASDAQ if a company no longer complies with the independent director requirement of Listing Rule 5605(b)(1)?
- What notification is required to be given to NASDAQ if a company no longer complies with the audit committee requirement of Listing Rule 5605(c)(2)?
