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Our recent Client Alert discusses the SEC’s approval of the NYSE’s proposed rule change narrowing the circumstances under which a listed company must obtain shareholder approval for a sale of securities to holders of five percent or more of either the common stock or voting power of the company. The rule change eliminates the shareholder approval requirement for sales of securities in excess of one percent of the company’s securities to related parties whose interest in the company is passive, making it easier for NYSE-listed companies to raise necessary capital quickly and bringing the NYSE listing rules more in line with those for issuers trading on other U.S. exchanges.