Failure to Get Shareholder Approval for Amendment to Section 423 Emplo

[Guest Edward McElroy]

A client previously established a Section 423 employee stock purchase plan. On January 17, 2001, the plan was amended to include an evergreen provision. The client's annual meeting was originally scheduled for sometime in November, 2001. Due to a number of factors, the meeting was not held until sometime after January 17, 2002. In other words, the client failed to secure shareholder approval within the 12-month period after the restated plan's adoption.

Other than issue hundreds of W-2s to employees who received discounted stock, is there anything the client can do? Thanks. Ed

Other tha

[Kirk Maldonado]

Was the number of shares originally allocated to plan extinguished? In other words, were there enough shares remaining in the plan to cover the purchases to date?