On April 29, 2014, the U.S. Securities and Exchange Commission
(the "SEC") provided guidance after a ruling by the U.S.
Court of Appeals for the District of Columbia Circuit in
National Association of Manufacturers, et al. v. SEC, et
al., No. 13-5252, holding that part of Rule 13p-1 under the
Securities Exchange Act of 1934 (the "Rule") was
The Rule requires U.S. public companies to disclose their use of
"conflict minerals" beginning June 2, 2014.
The SEC clarified that it still expects issuers to which the
Rule applies to file the associated disclosure on or before June 2,
2014. The filings should comply with and address those portions of
the Rule that were upheld by the Court. However, in consideration
of the Court's ruling, the SEC no longer requires companies to
describe their products as "DRC conflict free," having
"not been found to be 'DRC conflict free,'" or
"DRC conflict undeterminable," as originally required
under the Rule.
A company may still voluntarily describe its products in this
manner if it has obtained an independent private sector audit.
While the Rule (and its legal challenges) ultimately only affect
U.S. issuers, Canadian issuers and their advisors are closely
following the U.S. developments. Please contact any member of our
Mining and Natural Resources Group for further information.
1. Refer to our April 16, 2014 Goodmans Update "U.S.
Appeals Court Finds SEC's Conflict Minerals Rule
Unconstitutional" for a discussion of the Rule and the
The content of this article does not constitute legal advice
and should not be relied on in that way. Specific advice should be
sought about your specific circumstances.
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Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
The Government of Alberta recently announced a number of policy changes that will impact the Alberta Electricity Market, composed of its generators, transmitters, distributors, retailers, electricity consumers and wholesale electricity market.
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