Meet the JOBS Act's Jobs-Free Companies
Emily Chasan, Wall Street Journal, 6/5/12
The JOBS Act was supposed to be about clearing away regulation to help young companies create jobs.
Just eight weeks after its passage, however, more than a dozen of the companies seeking to use its looser rules for going public aren't the type of high-tech growth companies lawmakers had in mind.
"Special-purpose acquisition companies" and "blank check" companies, basically empty shells with almost no employees that are used in mergers or as a backdoor route to U.S. stock listings, have been quick to identify themselves in regulatory filings as "emerging growth companies."
The new law uses that phrase to describe which companies—once they have applied to go public—should be exempt from some financial-reporting and corporate-governance requirements.
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