Bill Would Boost Shareholder Limit for Closely Held Firms

Companies could have up to 1,000 shareholders before having to file financials.

Eight U.S. lawmakers backed a bill that would allow closely held firms including Facebook Inc. and Twitter Inc. to have as many as 1,000 shareholders before being required to file public financial statements.

The legislation, introduced by Representative David Schweikert of Arizona, would also exclude employees and accredited investors from the rules, which currently set the ceiling at 500 investors.

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