Replies to post #68094 on Effective Control Transport Inc. (fka EFFC)

[france101]

I agree with MrGoodBuddy, a least I am not the only one who see the problem!

[rosebud05]

I have been going over the law for the last hour or so and I really can't see the basis for your argument. Could you please explain? As far as I can see, RH deregistered the company just as the ECT friends have said. The company is deregistered with the SEC so therefore the rule regarding proxies for registered companies does not apply. Could you please point out the specific paragraphs that would support your claim that this is not the case.

[rosebud05]

It shall be unlawful for any person, by the use of the mails or by any means or instrumentality of interstate commerce or of any facility of a national securities exchange or otherwise, in contravention of such rules and regulations as the Commission may prescribe as necessary or appropriate in the public interest or for the protection of investors, to solicit or to permit the use of his name to solicit any proxy or consent or authorization in respect of any security (other than an exempted security) registered pursuant to section 12.

My reading of the section which you highlighted earlier is that an exempted security is also exempt from following the proxy rules, not, as you have implied, that it must follow the rules even though it is unregistered. Not saying that EFFC is exempt according to section 12, just that this phrase does not force exempt stocks to follow proxy rules and in fact does the opposite as far as I can tell.