SEC Form 20-F

What Is the SEC Form 20-F?

SEC Form 20-F is a form issued by the Securities and Exchange Commission (SEC) that must be presented by all "foreign private issuers" with listed equity shares on exchanges in the U.S. Form 20-F calls for the submission of an annual report in the span of four months of the end of a company's fiscal year or on the other hand if the fiscal year-end date changes. The reporting and qualification requirements for Form 20-F are stated in the Securities Exchange Act of 1934.

Grasping the SEC Form 20-F

The information requirements are not so severe as the requirements for domestic U.S. companies that make customary filings. The companies where under half of voting shares are held by U.S. investors might be eligible. When a company is considered ineligible for foreign private issuer status, it must file similar forms as customary filers, like the 8-K, 10-Q, and 10-K reports, as well as accommodate accounting statements to generally accepted accounting principles (GAAP) standards.

Benefits of the SEC Form 20-F

The goal of Form 20-F is to normalize the reporting requirements of foreign-based companies so investors can assess these investments alongside domestic equities. The form often contains a foreign company's annual report with financials. Form 20-F is required from foreign companies, both non-U.S. what's more, non-Canadian companies, whose securities are traded in the U.S.

Under the New York Stock Exchange (NYSE) rules, a company must likewise make the report accessible to shareholders through the company's website and make shareholders aware the report has been released by means of a press release. There are likewise different requirements, for example, posting in English that shareholders can request a printed version of the evaluated financial statements, which they will receive inside a reasonable period of time free of charge.

Failure to file Form 20-F with the SEC in the appropriate time period subjects a NYSE-listed company to procedures under section 802.01E. After notice is given by the exchange, there is generally a six-month "fix period" where the exchange screens the situation. Extra time might be conceded after this time slips by or delisting may start.

Illustration of the SEC Form 20-F

Unilever PLC is a public limited company registered in the Netherlands yet with its corporate headquarters in London, England. There are ordinary shares and depositary shares, alongside preferred stock, listed on the Euronext Amsterdam and NYSE.

Unilever files an annual Form 20-F with the SEC. Its most recent year ended on Dec. 31, 2019, and the filing was on March 4, 2020. There are a number of sections to the filing, including key information, information on the company, working/financial survey/possibilities, chiefs/senior management, and employees. The numbers, including the financials, are given in euros.

Features

• SEC Form 20-F is an annual report filing for non-U.S. what's more, non-Canadian companies that have securities trading in the U.S.
• The company must likewise make the report accessible to shareholders through the company's website.
• SEC Form 20-F normalizes the reporting requirements of foreign-based companies.