; and (2) with respect to a shareholder vote under paragraph (2) of such section 14A(a), beginning with the first such vote that occurs on or after the date that is 1 year after the date of the enactment of this Act. 502. CEO and chairman of the board of directors required to be different individuals (a) In general The Securities Exchange Act of 1934 ( 15 U.S.C. 78a et seq.) is amended by inserting after section 39 the following: 40. CEO and chairman of the board of directors required to be different individuals (a) In general Except as provided in subsection (b), an issuer that is required to prepare a proxy statement under section 14(a) may not have the same individual simultaneously serving in the position of chief executive officer (or any equivalent position) of such issuer and chairman of the board of directors (or any equivalent position) of such issuer, and an individual may not simultaneously serve in both such positions. (b) Treatment of small capitalization companies Subsection (a) shall not apply in the case of a small capitalization company (as defined by the Commission by regulation) if, by shareholder vote, the shareholders elect for such subsection not to apply. . (b) Conforming amendment The Securities Exchange Act of 1934 is further amended by striking section 14B. (c) Effective date The amendments made by this section shall apply beginning on the date that is 2 years after the date of the enactment of this Act. 503. Extension of certain requirements for directors and officers (a) In general Section 16 of the Securities Exchange Act of 1934 ( 15 U.S.C. 78p ) is amended by adding at the end the following: (h) Persons ceasing To be directors or officers (1) Continued applicability of requirements During the period beginning on the date on which a person ceases to be a director or officer described in subsection (a)(1) with respect to an issuer and ending on the date that is 1 year thereafter, such person shall continue to be subject to this section (except as provided in paragraph (2)) in the same