Summary
This 8-K filing by Southern Company (SO) addresses a temporary deficiency in its Audit Committee composition, a requirement for continued listing on the New York Stock Exchange (NYSE). The resignation of a board member led to the Audit Committee having only two members, falling below the NYSE's minimum requirement of three members. The company received a notice from NYSE Regulation indicating a potential noncompliance if the deficiency is not cured by October 19, 2009.
Key Highlights
- 1Southern Company received a notice from NYSE Regulation regarding a deficiency in its Audit Committee size.
- 2The deficiency arose from the resignation of Mr. Francis S. Blake from the Board of Directors, reducing the Audit Committee to two members.
- 3The NYSE requires a minimum of three members on the audit committee for listed companies.
- 4The Company is out of compliance with NYSE Listing Rule 303A.07(a) as of the notice date.
- 5Southern Company intends to appoint a third member to the Audit Committee at its board meeting on October 19, 2009.
- 6This appointment is expected to resolve the deficiency and ensure continued compliance with NYSE listing standards.
Frequently Asked Questions
The 8-K filing is due to Southern Company temporarily not meeting the NYSE's minimum requirement of three members on its Audit Committee, following the resignation of a board member.
Southern Company is not meeting Section 303A.07(a) of the NYSE Listed Company Manual, which mandates a minimum of three members for the audit committee.
The company must cure the deficiency by October 19, 2009.
Southern Company's Board of Directors plans to appoint a third member to the Audit Committee at its regularly scheduled board meeting on October 19, 2009, which is expected to resolve the deficiency.