Replies to post #5671 on Go Green Global Technologies Inc (GOGR)

[edminnema]

Let’s start with the definition. A Shell Company as defined in Rule 405 of the Securities Act is a company that has:

No or nominal operations; and
No or nominal assets
Assets consisting solely of cash and cash equivalents; or
Assets consisting of any amount of cash and cash equivalents and nominal other assets.
This definition is not 100% quantifiable but it does provide a benchmark for risk processes. Additionally, reporting issuers must disclose if they fall within the definition set in Rule 405, but enforcement cases show issuers sometimes skirt the issue.