INTL FCStone 2014 Annual Report Download - page 38

INTL FCSTONE INC.  Form 10K22
PART I
ITEM 1B Unresolved Staff Comments
and the Markets in Financial Instruments Regulation (“MIFIR”)
to assess the impact this legislation is likely to have on our United
Kingdom business when implemented in 2016 and 2017. Among
other things, the legislation will impose additional transaction
and position reporting requirements, disclosure obligations, as
well as requiring certain over-the-counter derivatives to be traded
on organized trading facilities (“OTFs”).
If we are unable to manage any of these risks effectively, our
business could be adversely affected.
ITEM 1B Unresolved Staff Comments
We have received no written comments regarding our periodic or current reports from the staff of the SEC that were issued 180 days
or more preceding the end of our fiscal year 2014 that remain unresolved.
ITEM 2 Properties
e Company maintains offices in New York, New York; Winter
Park, Florida; West Des Moines, Iowa; Chicago, Illinois; Kansas
City, Missouri; St. Louis, Missouri; Bloomfield, Nebraska; Omaha,
Nebraska; Minneapolis, Minnesota; Bloomington, Illinois; Miami,
Florida; New Smyrna Beach, Florida; Indianapolis, Indiana; Spirit
Lake, Iowa; Bowling Green, Ohio; Nashville, Tennessee; Golden,
Colorado; Lawrence, Kansas; Mobile, Alabama; Winnipeg, Canada;
Buenos Aires, Argentina; Campinas, Brazil; Sao Paulo, Brazil;
Maringa, Brazil; Porto Alegre, Brazil; Goianai, Brazil; Recife,
Brazil; Cuiaba, Brazil; Asuncion and Ciudad del Este, Paraguay;
Bogota, Colombia; London, United Kingdom; Dublin, Ireland;
Dubai, United Arab Emirates; Singapore, Singapore; Beijing and
Shanghai, China; Hong Kong and Sydney, Australia.
All of our offices and other principal business properties are
leased, except for the space in Buenos Aires, which we own.
We believe that our leased and owned facilities are adequate to
meet anticipated requirements for our current lines of business.
ITEM 3 Legal Proceedings
In addition to the matters discussed below, from time to time
and in the ordinary course of business, we are involved in various
legal actions and proceedings, including tort claims, contractual
disputes, employment matters, workers’ compensation claims
and collections. We carry insurance that provides protection
against certain types of claims, up to the policy limits of our
insurance. In the opinion of management, possible exposure
from loss contingencies in excess of the amounts accrued, and
in addition to the possible losses discussed below, is not material
to our earnings, financial position or liquidity.
e following is a summary of our significant legal matters.
Securities Litigation and Regulatory
Proceedings
In August 2008, shareholders filed a derivative action against
FCStone and certain directors of FCStone in the Circuit Court
of Platte County, Missouri, alleging breaches of fiduciary duties,
waste of corporate assets and unjust enrichment. Shareholders
subsequently filed an amended complaint in May 2009 to add
claims based upon the losses sustained by FCStone arising out
of a customer’s energy trading account. In July 2009, the same
plaintiff filed a motion for leave to amend the existing case to
add a purported class action claim on behalf of the holders of
FCStone common stock.
In July 2009, plaintiffs filed a purported shareholder class action
complaint against FCStone and its directors, as well as the
Company in the Circuit Court of Clay County, Missouri. e
complaint alleged that FCStone and its directors breached their
fiduciary duties by failing to maximize stockholder value in
connection with the contemplated acquisition of FCStone by the
Company. is complaint was subsequently consolidated with the
complaint filed in the Circuit Court of Platte County, Missouri.
e plaintiffs subsequently filed an amended consolidated
complaint which does not assert any claims against the Company.
is complaint purported to be filed derivatively on FCStone’s