THE WHITE HOUSE
Office of the Vice President
For Immediate Release
January 27, 1999
VICE PRESIDENT GORE LAUDS U.S. SECURITIES AND
EXCHANGE COMMISSION REWRITE OF
FINANCIAL DISCLOSURE FORMS
Left to right, SEC Chairman Arthur Levitt; Nancy M. Smith, SEC; Vice
President Gore, Brian Lane, SEC; SEC Commissioner Isaac Hunt.
Washington, DC -- Vice President Gore presented two Securities and
Exchange Commission (SEC) employees a Plain Language Award today for
their work with financial disclosure forms -- a step that will help
millions of Americans who depend on SEC regulated documents to
determine where to invest their money.
The Vice President presented the awards to Nancy Smith of the
SEC's Office of Investor Education and Assistance, and Brian Lane,
Director of the Division of Corporation Finance for their work on the
SEC's initiative to get companies to write financial disclosure
documents in plain language.
"I want to congratulate Arthur Levitt, Chairman of the SEC, and
the members of his staff who have been so helpful in promoting the use
of plain language not only in the investment community, but throughout
our government," Vice President Gore said.
In October, the SEC rule took effect, requiring companies to write
the cover page, summary, and risk factors sections of prospectuses in
plain language to help customers understand the companies' actions.
And, to help the companies achieve that goal, the SEC has published a
plain language guide which is available on the Internet at
Today's Plain Language Award builds on President Clinton's June 1st
Executive Memorandum that directed all executive departments and
agencies to make government documents clearer and more straightforward,
with a goal of having all existing letters and notices written in plain
language by 2002.
With regard to today's announcement, the attached page illustrates
a disclosure document before and after a plain language rewrite.
Drakecorp has filed with the Internal Revenue Service a tax ruling
request concerning, among other things, the tax consequences of the
Distribution to the United States holders of the Drakecorp Stock. It is
expected that the Distribution of Beco Common Stock to the shareholders
of Drakecorp will be tax-free to such shareholders for federal income
tax purposes, except to the extent that cash is received for fractional
While we expect that this transaction will be tax free for U.S.
shareholders at the federal level (except for any cash paid for
fractional shares), we have asked the Internal Revenue Service to rule
that it is.
Related Resources or Stories
6/1/98 Memorandum on Plain English in Government Writing
Plain Language Action Network
Federal Communicators Network and Plain Language Action Network Workshop Internet Resources
OSHA's Marthe Kent Gets the First Plain Language Award
Vice President Gore Presents Second Plain Language Award
Vice President Gore Presents Third Plain Language Award to GSA Employees
Vice President Gore Presents Fourth Plain Language Award to HUD Employees
Vice President Gore Presents Fifth Plain Language Award to USDA Employee