The South Dakota Affiliate Letter is a crucial document required in a Rule 145 transaction, specifically relating to affiliate companies in South Dakota. This letter ensures compliance with regulatory requirements and legal procedures when a company intends to merge or reclassify its securities. A Rule 145 transaction refers to a situation where a company proposes to reclassify the securities of an affiliate company. This process usually involves the exchange of securities or merger between two affiliated entities. In such cases, the Securities and Exchange Commission (SEC) mandates the submission of an Affiliate Letter as part of the regulatory framework. The purpose of the South Dakota Affiliate Letter is to certify that the merger or reclassification transaction complies with the applicable provisions of the South Dakota Business Corporation Act. It acts as a declaration from the affiliate company based in South Dakota, confirming their approval and participation in the transaction. In addition to the general South Dakota Affiliate Letter, there might be different types of letters depending on the specific context of the Rule 145 transaction: 1. Merger Affiliate Letter: This type of South Dakota Affiliate Letter is specifically used in cases where the transaction involves a merger between two affiliate companies. It outlines the terms and conditions of the merger, as well as confirming the approval of the merger by the South Dakota affiliate company. 2. Reclassification Affiliate Letter: This type of South Dakota Affiliate Letter is utilized when the transaction involves the reclassification of securities. It includes details about the existing and proposed classification of securities, along with the South Dakota affiliate company's consent and agreement to the reclassification. 3. Asset Transfer Affiliate Letter: In certain Rule 145 transactions, where the primary focus is the transfer of assets between affiliated companies, a South Dakota Affiliate Letter might be required to indicate the consent and approval of the South Dakota affiliate company involved in the asset transfer. Overall, the South Dakota Affiliate Letter in Rule 145 transactions serves as a formal acknowledgement and consent from the affiliate company, based in South Dakota, regarding their involvement and compliance with pertinent laws and regulations.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.