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NYSE Rule Implementation – Dividend Announcements

As noted in its annual guidance memorandum issued on January 10, 2018, the previously-announced New York Stock Exchange (“NYSE”) rule change relating to public dividend and stock distribution announcements will become effective on February 1, 2018. The new rule requires that NYSE-listed companies provide notice to the NYSE at least ten minutes before making any public announcement with respect to a dividend or stock distribution, including outside of market hours. This is a change from a previous requirement that the NYSE be notified of dividend and stock distribution announcements outside of market hours no later than simultaneously with the public announcement.

NYSE-listed companies should ensure that investor relations and other staff responsible for dividend announcements and NYSE communications are aware of this new requirement. The rule change does not affect the pre-existing NYSE requirements for announcements made during market hours. For additional detail on the impact of the rule change, please see this chart prepared by the NYSE.

© 2020 Jones Walker LLPNational Law Review, Volume VIII, Number 18


About this Author

Alexandra Clark Layfield Corporate Attorney Jones Walker Law Firm

Alexandra Layfield joined Jones Walker's Corporate & Securities Practice Group in 2008. Ms. Layfield's practice is exclusively transactional, concentrating principally on the areas of securities law, mergers and acquisitions, general corporate law and corporate governance matters.

Ms. Layfield's principal area of focus is counseling corporations on corporate governance matters and the related disclosure requirements of the securities laws and trading markets, including reviewing annual, quarterly, and current reports, proxy statements, and...

David Bordson-Bozzon, Attorney, Jones Walker

David Bordson-Bozzo is an associate in the firm's Corporate & Securities Practice Group in the New Orleans office. He earned his juris doctor degree, magna cum laude, from Tulane University Law School in 2013 and served as a research assistant for a professor of tax law during his second and third years. He graduated from the Jerome Fisher Management and Technology Program at the University of Pennsylvania with a Bachelor of Applied Science in Systems Engineering and a Bachelor of Science in Economics from the Wharton School.