Sarbanes-Oxley Act was signed into law by George W. Bush in 2002. The law was a reaction to the wave of high profile corporate scandals (including Enron and WorldCom) that decimated investor confidence is U.S. securities markets. The law is comprised of 11 primary features, which range from enhanced criminal penalties to heightened corporate responsibility requirements. The Public Company Accounting Oversight Board was created by Sarbanes-Oxley. It is meant to regulate and inspect the companies in question to ensure their compliance. Privately held companies are not affected by the law.
Cry Wolf Quotes
The Sarbanes bill will hand American corporations back to the trial lawyers for summary execution.
Facing a possibility of 20 years in jail and $5 million fines, executives are going to spend lots of time going over financial statements, and less time creating, innovating and leading,”
If the CEO of a $50-billion corporation operating in 112 countries is required to sign a document saying he guarantees under penalty of law that all these numbers are correct, there's not a CEO in America that will sign it.
I'm an old man, and I've never seen a feeding frenzy like the one we've had on corporate accountability.