What You Need To Do Now In Response To The Sarbanes-Oxley Act Of 2002
- Topics:
- Investor Relations
- Tags:
- Act,
- Sarbanes-Oxley,
- Regulatory Compliance,
- Regulations,
- Policies And Procedures,
- Internal Control,
- Human Resources,
- Government,
- Financial Accounting,
- Finance,
- ...
- Source:
- Akin Gump Strauss Hauer & Feld
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Overview: The Sarbanes-Oxley Act of 2002, passed by nearly unanimous votes in both the U.S. House of Representatives and the Senate, is an historic piece of legislation that overhauls corporate governance requirements, federal disclosure laws, and the oversight of public accounting firms. The Act is intended to enhance the accuracy, reliability, and transparency of corporate disclosures under the securities laws by increasing senior management’s responsibility for such reports and increasing criminal penalties for violations of the securities laws. While most of the provisions of the Act are effective only upon future rulemaking by the SEC and other regulatory bodies, several significant provisions of the Act are effective now. This article briefly discusses internal controls and procedures one recommend that public companies consider putting in place. These are CEO and CFO certification of periodic reports, expedited disclosure of insider transactions, prohibition of loans to officers and directors. In addition to implementing internal controls necessary under the Act, public companies also should undertake a comprehensive re-examination, and updating, of existing legal compliance policies.
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Format: PDF | Size: 90KB | Date: Sep 2002 | Pages: 2
