China, Xi'an: China Power Equipment, Inc. (China Power), a manufacturer of a new generation of energy saving amorphous alloy transformer cores and transformers in China, announced that it filed a certification on Form 15 with the Securities and Exchange Commission (SEC) to suspend its reporting obligations under Section 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act").
The action has been approved by the Board of Directors as a cost reduction measure, reports Market Watch.
Terminating the China Power's SEC reporting obligations will allow it to reduce the substantial legal, accounting and other expenses associated with reporting compliance.
The company is eligible for this action as it has fewer than 300 record holders of its common stock as of the date hereof in addition to its satisfaction of other eligibility criteria under Rule 12h-3 of the Exchange Act on the date of filing the Form 15.
Due to the fact the Company is a section 15(d) company, the duty to file under Section 15(d) of the Exchange Act automatically suspends as to any fiscal year, other than the fiscal year within which a registration statement became effective if the company has less than 300 shareholders of record at the beginning of such a year, which has been the case for China Power for at least the past three years.
Nevertheless, the Company chose to file the Form 15 to notify the public that immediately upon the filing of the Form 15, it no longer intends to continue to file Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current
Reports on Form 8-K. Shares are anticipated being available for trading on the OTC Pink sheets, although there can be no assurances that any trading market for the Company's securities will exist, after the company filed the Form 15.
China Power Equipment, Inc. designs, manufactures, and distributes amorphous alloy transformer cores and amorphous core step-down transformers in China. The Company currently manufactures 59 different products, primarily amorphous alloy cores and amorphous alloy core transformers.