Disclosure via the Internet: Electronic Delivery of Mandated Disclosure Documents

Abstract

Abstract This article is directed to public companies that want to use the Internet for disclosure purposes. Because electronic media — including Internet Web sites — potentially allow for the rapid dissemination of information to investors and financial markets in a more cost-effective and widespread manner than traditional “paper-based methods,” issuers and other market participants have been requesting guidance from the Securities and Exchange Commission (SEC) on how to deliver mandated disclosure documents (e.g., annual reports and proxy statements) via electronic media in compliance with existing federal securities laws. The SEC has yet to promulgate a comprehensive set of rules and regulations to govern the electronic delivery of documents to the public. However, in an effort to respond to inquiries and to offer guidance to issuers (including corporations and mutual funds) and other market participants (including broker/dealers) with respect to the electronic delivery of man- dated disclosure docume...