About 9,100 public companies filed proxy statements with the Securities and Exchange Commission ten years years ago. However, in 2009, only 6,450 did. Why the smaller number?
There can be many reasons. But as someone who has been a principal in several, and as an observer of the corporate scene for many years, I feel there is a major underlying reason. Foreign companies may be fleeing as regulations are getting more onerous.
Sarbanes Oxley compliance is an example. The federal requirements are too expensive and put down restrictions on management which only plaintive lawyers find equitable and just. Being publicly owned is simply too restrictive; operating a business in a governmental tax and spend environment is tough enough.
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