In eukaryotes, the activation of mitotic cyclin-dependent kinases (CDKs) in
duces mitosis, and their inactivation causes cells to leave mitosis(1). In
budding yeast, two redundant mechanisms induce the inactivation of mitotic
CDKs. In one mechanism, a specialized ubiquitin-dependent proteolytic syste
m (called the APC-dependent proteolysis machinery) degrades the mitotic (Cl
b) cyclin subunit. In the other, the kinase-inhibitor Sic1 binds to mitotic
CDKs and inhibits their kinase activity(1,2). The highly conserved protein
phosphatase Cdc14 promotes both Clb degradation and Sic1 accumulation. Cdc
14 promotes SIC1 transcription and the stabilization of Sic1 protein by dep
hosphorylating Sic1 and its transcription factor Swi5. Cdc14 activates the
degradation of Clb cyclins by dephosphorylating the APC-specificity factor
Cdh1 (refs 3, 4). So how is Cdc14 regulated? Here we show that Cdc14 is seq
uestered in the nucleolus for most of the cell cycle. During nuclear divisi
on, Cdc14 is released from the nucleolus, allowing it to reach its targets.
A highly conserved signalling cascade, critical for the exit from mitosis,
is required for this movement of Cdc14 during anaphase. Furthermore, we ha
ve identified a negative regulator of Cdc14 Cfi1, that anchors Cdc14 in the
nucleolus.