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Full-Text Articles in Securities Law
Skimming From The 2%: The Status Of Georgia's Restrictions On Shareholder Access To Corporate Information, Ruari J. O'Sullivan
Skimming From The 2%: The Status Of Georgia's Restrictions On Shareholder Access To Corporate Information, Ruari J. O'Sullivan
Georgia Law Review
The Georgia Court of Appeals, in Mannato v. SunTrust
Banks, Inc., held that O.C.G.A. § 14-2-1602 abrogated all
common law rights to inspect corporate records. As a
result, shareholders in Georgia owning less than 2% of a
corporation'soutstandingshares suddenly lost the right to
petition a court to grant access to a corporation's books
and records. This Note argues that the Mannato decision
was incorrect. The Georgia Court of Appeals failed to
notice the significant procedural differences that existed
between the statutory and common law right of inspection
and erroneously applied Georgia's established law of
statutory abrogation. The court also brushed …
Mutual Fund Performance Advertising: Inherently And Materially Misleading?, Alan R. Palmiter, Ahmed E. Taha
Mutual Fund Performance Advertising: Inherently And Materially Misleading?, Alan R. Palmiter, Ahmed E. Taha
Georgia Law Review
Mutual fund companies routinely advertise the past
returns of their strong-performing, actively-managed
equity funds. These performance advertisements imply
that the advertised high past returns are likely to
continue. Indeed, investors flock to these funds despite
high past returns being a poor predictor of high future
returns. Thus, fund performance advertising is inherently
and materially misleading and violates federal securities
antifraud standards. In addition, the SEC-mandated
warning in these advertisements that "past performance
does not guarantee future results"fails to temper investors'
focus on past returns.
The SEC should do more to prevent investors from being
misled by fund performance advertisements. It …