Inside Facebook

As Facebook’s rolls grow closer and closer to hitting the 1,000 mark, the number of Facebook shareholders is quickly approaching the 500 mark. The Securities & Exchange Act of 1934 requires private companies with more than 500 shareholders and $10 million in assets to publicly disclose their financial results.

But as Spencer Ante reports, Facebook has applied for and was granted an exemption which will allow the company to continue without publicly disclosing its finances. Fenwick & West’s Thomas Kim basically argued that Facebook’s restricted stock units should be treated differently, and the SEC agreed.

For those interested in learning more about the nature of Facebook’s restricted stock unit plan, including the accelerated vesting schedule in the case of a “liquidity event,” check out the letter from Fenwick & West below, courtesy of the SEC: