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EQUINIX INC 8-K Report, Listing Notice (Feb 12, 2007)

Filed February 12, 2007For Securities:EQIX

Summary

This 8-K filing by Equinix Inc. (EQIX) on February 12, 2007, primarily reports the resignation of Mr. Louis J. Lavigne, Jr. from its Board of Directors. Mr. Lavigne's departure is significant as he was the Chairman of the Audit Committee and considered the company's financial expert. Consequently, Equinix has notified the Nasdaq Stock Market that it is not in compliance with Nasdaq's audit committee requirements, specifically the need for at least three independent members, one of whom must be a financial expert. The resignation was stated to be for personal reasons, with no disagreements with the company's management or board. Equinix has until August 8, 2007, to rectify this situation by appointing a qualified individual to its Board and Audit Committee who meets Nasdaq's criteria. The company is actively searching for a suitable candidate to restore compliance. Investors should monitor Equinix's progress in filling this critical role and ensuring its Audit Committee structure meets regulatory standards.

Key Highlights

  • 1Resignation of Mr. Louis J. Lavigne, Jr. from Equinix's Board of Directors.
  • 2Mr. Lavigne was the Chairman and financial expert of the Audit Committee.
  • 3Equinix is non-compliant with Nasdaq's Audit Committee requirements due to a vacancy.
  • 4The non-compliance stems from NASD Rule 4350(d)(2)(A) regarding independent members and a financial expert.
  • 5Equinix has a cure period until August 8, 2007, to regain compliance.
  • 6The company is actively seeking a new Board member with appropriate audit committee qualifications.
  • 7Mr. Lavigne's resignation was for personal reasons and not due to any disagreements with the company.

Frequently Asked Questions

Equinix is filing this Form 8-K to report a material event, specifically the departure of a director which has resulted in the company's non-compliance with Nasdaq's continued listing rules concerning its Audit Committee composition. Publicly traded companies are required to promptly disclose such significant events.

Equinix is currently in violation of NASD Rule 4350(d)(2)(A), which requires the audit committee of a Nasdaq-listed company to have at least three independent members, and at least one of whom must be a 'financial expert' as defined by the rules.

Equinix is actively searching for a new candidate to join its Board of Directors and Audit Committee. The goal is to find an individual who meets both the independence requirements and the 'financial expert' qualification mandated by Nasdaq.

Equinix has a cure period until August 8, 2007, as per NASD Rule 4350(d)(4)(B), to appoint a suitable director and regain compliance with Nasdaq's audit committee requirements.