The K-8 form – many companies are concerned about any activity with the Securities Commission, which causes them to abstain from required reporting even if it is simple and required. One of the simplest forms that companies abstain from filing is the K-8 form. This is a very simple and inexpensive report the only objective of which is to report on fundamental changes occurring in the company.
Due to the concern extant the current approach is that when the company is in a grey area or bordering on the need to report, the company abstains from reporting. However the approach that the companies should adopt in regard to this report is that as the report is so simple it is preferable to report even for borderline cases – it is better to be safe than sorry.
Hereinafter are several central events that require reporting to the Securities Commission by means of the K-8 form:
- Signature, termination or amendment of a significant agreement in the company
- Bankruptcy or receivership
- Significant purchase or sale by the company
- Significant financing arrangements
- Acceleration of significant debts for financing
- Costs entailed in exit from activity
- Deletion of the company from trade
- Unregistered sale of the company shares
- Replacement of accountant
- Report on the financial reports that were published in the past and that can no longer be relied upon
- Changes in the composition of the Board of Directors
- Appointment, resignation, retirement or termination of tenure of members of management and any significant change in the contracts with them
- Amendments and changes to the company’s code of ethics
- Results of the vote in the shareholders meeting
Apart from several exceptions, a report should be made to the Securities and Exchange Commission (SEC) regarding an event by a K-8 form within 4 working days from the date of the event.
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