Spanish Broadcasting System says it has received a noncompliance letter from Nasdaq because it does not have three independent directors on its audit committee. That is the result of a vacancy created when Antonio Fernandez voluntarily resigned from the board.
SBS says the letter from Nasdaq, dated August 27th, indicated that the company is no longer in compliance with the exchange rule requiring it to have an audit committee consisting of at least three directors who meet the Nasdaq Rule’s independence and financial sophistication standards. Fernandez had been a member of the audit committee, leaving it with only two members.
The company, however, has until August 11, 2010 to get back into compliance with the Nasdaq Rule.
“The Company is in the process of searching for a new candidate to serve on the Board and its Audit Committee who possesses qualifications that will satisfy the independence and financial sophistication standards required by the Nasdaq Rule and fully intends to regain compliance with the Nasdaq Rule within the cure period allowed by Nasdaq,” SBS said in a statement.
RBR/TVBR observation: Not a big deal. SBS has nearly a year remaining to fill the vacancy. More importantly, SBS needs an advertising recovery and a strong rally on Wall Street to get its stock price back above the Nasdaq minimum of a buck a share.