15 USC 78qq - Small Business Capital Formation Advisory Committee

U.S Code last checked for updates: May 11, 2024

§ 78qq.

Small Business Capital Formation Advisory Committee

(a)

Establishment and purpose

(1)

Establishment

(2)

Functions

(A)

In general

The Committee shall provide the Commission with advice on the Commission’s rules, regulations, and policies with regard to the Commission’s mission of protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation, as such rules, regulations, and policies relate to—

(i)

capital raising by emerging, privately held small businesses (“emerging companies”) and publicly traded companies with less than $250,000,000 in public market capitalization (“smaller public companies”) through securities offerings, including private and limited offerings and initial and other public offerings;

(ii)

trading in the securities of emerging companies and smaller public companies; and

(iii)

public reporting and corporate governance requirements of emerging companies and smaller public companies.

(B)

Limitation

(b)

Membership

(1)

In general

The members of the Committee shall be—

(A)

the Advocate for Small Business Capital Formation;

(B)

not fewer than 10, and not more than 20, members appointed by the Commission, from among individuals—

(i)

who represent—

(I)

emerging companies engaging in private and limited securities offerings or considering initial public offerings (“IPO”) (including the companies’ officers and directors);

(II)

the professional advisors of such companies (including attorneys, accountants, investment bankers, and financial advisors); and

(III)

the investors in such companies (including angel investors, venture capital funds, and family offices);

(ii)

who are officers or directors of minority-owned small businesses or women-owned small businesses;

(iii)

who represent—

(I)

smaller public companies (including the companies’ officers and directors);

(II)

the professional advisors of such companies (including attorneys, auditors, underwriters, and financial advisors); and

(III)

the pre-IPO and post-IPO investors in such companies (both institutional, such as venture capital funds, and individual, such as angel investors); and

(iv)

who represent participants in the marketplace for the securities of emerging companies and smaller public companies, such as securities exchanges, alternative trading systems, analysts, information processors, and transfer agents; and

(C)

three non-voting members—

(i)

one of whom shall be appointed by the Investor Advocate;

(ii)

one of whom shall be appointed by the North American Securities Administrators Association; and

(iii)

one of whom shall be appointed by the Administrator of the Small Business Administration.

(2)

Term

(3)

Members not Commission employees

(c)

Chairman; vice chairman; secretary; assistant secretary

(1)

In general

The members of the Committee shall elect, from among the members of the Committee—

(A)

a chairman;

(B)

a vice chairman;

(C)

a secretary; and

(D)

an assistant secretary.

(2)

Term

(d)

Meetings

(1)

Frequency of meetings

The Committee shall meet—

(A)

not less frequently than four times annually, at the call of the chairman of the Committee; and

(B)

from time to time, at the call of the Commission.

(2)

Notice

(e)

Compensation and travel expenses

Each member of the Committee who is not a full-time employee of the United States shall—

(1)

be entitled to receive compensation at a rate not to exceed the daily equivalent of the annual rate of basic pay in effect for a position at level V of the Executive Schedule under section 5316 of title 5 for each day during which the member is engaged in the actual performance of the duties of the Committee; and

(2)

while away from the home or regular place of business of the member in the performance of services for the Committee, be allowed travel expenses, including per diem in lieu of subsistence, in the same manner as persons employed intermittently in the Government service are allowed expenses under section 5703 of title 5.

(f)

Staff

(g)

Review by Commission

The Commission shall—

(1)

review the findings and recommendations of the Committee; and

(2)

(A)

assessing the finding or recommendation of the Committee; and

(B)

disclosing the action, if any, the Commission intends to take with respect to the finding or recommendation.

(h)

Federal Advisory Committee Act

(June 6, 1934, ch. 404, title I, § 40, as added Pub. L. 114–284, § 2(b), Dec. 16, 2016, 130 Stat. 1450.)

cite as: 15 USC 78qq