Definition & Meaning of Deputation Form 144
A Deputation Form 144 is often confused with SEC Form 144, which is a regulatory document used in the United States. This form serves as a notice to the U.S. Securities and Exchange Commission (SEC) regarding the proposed sale of restricted or affiliate-held securities. It is essential for company affiliates, such as directors and executives, to file this form when their planned sale exceeds five thousand shares or has an aggregate value over fifty thousand dollars within a three-month period. Understanding this distinction is crucial for compliance with securities regulations.
How to Use the Deputation Form 144
The use of the Deputation Form 144 involves several steps to ensure compliance with SEC regulations. First, the form must be completed electronically at the time the sell order is placed with a broker-dealer. This process requires the seller to provide detailed information about the securities being sold, including the number of shares and the sale price. The completed form must be submitted to the SEC and the sale must be executed within ninety days of filing. Failure to adhere to these guidelines can result in penalties.
How to Obtain the Deputation Form 144
Obtaining the Deputation Form 144 is a straightforward process. The form is available through the SEC's official website, where users can access the necessary documentation for filing. Additionally, many financial institutions and broker-dealers provide resources and assistance for completing the form. It is important to ensure that the most current version of the form is used to avoid any compliance issues.
How to Fill Out Deputation Form 144
Filling out the Deputation Form 144 requires careful attention to detail. The form typically includes sections for the seller's information, details about the securities, and the intended sale price. Each section must be completed accurately to ensure that the filing is valid. For example, the seller must indicate whether they are an affiliate of the company and provide the exact number of shares being sold. Incorrect or incomplete information can lead to delays or penalties.
Steps to Complete the Deputation Form 144
Completing the Deputation Form 144 involves a series of steps:
- Gather necessary information: Collect details about the securities, including the number of shares and their value.
- Access the form: Download the form from the SEC website or obtain it from your broker-dealer.
- Fill out the form: Provide all required information, ensuring accuracy.
- Submit the form: File the form electronically at the time of the sale order.
- Complete the sale: Ensure that the sale occurs within ninety days of filing.
Who Typically Uses the Deputation Form 144
The Deputation Form 144 is primarily used by company affiliates, including directors, executives, and large shareholders. These individuals are often involved in the sale of restricted or affiliate-held securities and must comply with SEC regulations. Understanding the requirements of this form is essential for anyone in a position of authority within a publicly traded company.
Important Terms Related to Deputation Form 144
Familiarity with key terms related to the Deputation Form 144 can enhance understanding of its use:
- Restricted Securities: Securities that cannot be sold until certain conditions are met.
- Affiliate: A person or entity that has a close relationship with a company, often holding a significant number of shares.
- Broker-Dealer: A person or firm that buys and sells securities on behalf of clients.
Legal Use of the Deputation Form 144
The legal use of the Deputation Form 144 is governed by SEC regulations. It is mandatory for affiliates to file this form before selling restricted securities. Non-compliance can result in legal repercussions, including fines and sanctions. It is essential for users to understand the legal implications of their transactions and ensure that all filings are completed accurately and on time.
Filing Deadlines / Important Dates
Filing deadlines for the Deputation Form 144 are critical to compliance. The form must be filed at the time the sell order is placed with a broker-dealer. Additionally, the sale must be completed within ninety days of the filing. It is advisable for individuals to keep track of these dates to avoid any potential penalties associated with late filings.
