SOX Exemption Extended | Gcconsulting.com
General Counsel Consulting
About us Attorney resources Employer resources Job listings Submit resume Contact Us
General Counsel Consulting
Sign In
Email:
Password:
Forgot your password?
New User?
Signup
 
2016
Most Influential
Legal Recruiters By
GCC
General Counsel
Consulting
provided
exceptional
service in helping
my organization
recruit for a hard
to fill position.
They did extensive
work on the front
end to understand
our needs and
our culture and
began referring
highly qualified
candidates almost
immediately.
 
Melinda Burrows
Deputy General Counsel
- Litigation and
Compliance, Progress
Energy Service Company
LLC
 

Jobs for Law Students
Law Student - Law Firm in San Jose, CA
USA-CA-San Jose
File Clerk The candidate will be organizing and filing documents for client files. Creating compute.... [more]


Articles By
Harrison Barnes From
BCG Attorney Search

 

 
Click here
 

Job of the Day
Legal Counsel for Beneficiaries; Proposition 19 & Property Tax Relief; Elder Law
Newport Beach California United States

"Certain beneficiaries and trustees lacking legal counsel that we fund trust loans for, generally fo...


Inhouse News
Article Archives

SOX Exemption Extended

  DOWNLOAD PDF         EMAIL TO FRIEND
 
  
In-House News:

SOX Exemption Extended
By Anique Gonzalez

In recent weeks, the House of Representatives has demonstrated its desire for the Securities and Exchange Commission to further postpone internal regulations associated with the Sarbanes-Oxley Act, most clearly by voting to prolong the exemption of small businesses through 2008. It should be noted that businesses with less than $75 million in market capitalization fall into the small-company category.

Since its inception in 2002, the Sarbanes-Oxley Act has generated controversy. Initially developed to combat the increasing number of corporate/accounting scandals, including Enron and Tyco, and to appease American consumers, the act raised standards for the accountability of public companies. Comprised of 11 sections, the act puts forth a range of requirements such as internal control assessments and enhanced financial disclosure that aim to more successfully regulate corporate activities. Proponents believe the act creates necessary regulations that help protect consumers; challengers say it economically inhibits companies.

Backed by Representatives Scott Garrett of New Jersey and Tom Feeney of Florida, the amendment extending the exemption was incorporated into the Finance Appropriations and Government Appropriations Act of 2008, which determines the funds allocated for various services and government activities during 2008.

In response to the amendment's passage, Garrett said, "I am pleased that so many of my colleagues joined me in helping small businesses this evening. This victory will keep small business from straining under the burden of the SOX Section 404 requirement through the end of fiscal year 2008."

SOX Section 404 compliance has been a difficult and pricey task for major companies, which are required to provide reports on their financial activities. If it has been arduous for large companies, it will be even more difficult for smaller, less-established businesses. This is one reason Reps. Garrett and Feeney wanted to impede the application of this law to small companies.

However, the chairman of the SEC, Christopher Cox, maintained that the actions taken by Congress were superfluous since the SEC recently approved measures that would decrease compliance costs. Among these measures are the SEC guidance for management and the recently established Public Company Accounting Oversight Board.

Various organizations weighed in on the subject, very quickly taking sides. The Council of Institutional Investors, the AARP, and several consumer groups such as Consumer Action forcefully opposed the amendment. Supporters included the Chamber of Commerce, the National Taxpayers Union, and Citizens Against Government Waste.

Of course, the next step will take place in the Senate. Whether the amendment will be approved, however, has yet to be determined. In addition to the SOX amendment, there is another bill regarding small businesses currently being mulled over in Congress that, according to backers Gregory Meeks and Vito Fossella, aims to increase the competitiveness of the United States. Meeks and Fossella argued that the United States will be able to more readily contend with competitors by allowing small businesses to list on the NYSE, the American Stock Exchange, and the NASDAQ Stock Market. Small companies that are presently unable to list on American stock exchanges may be forced to list on competing stock exchanges in other countries.

In a statement, Fossella said, "This legislation would help ensure an even playing field for all domestic exchanges to compete in a global marketplace. It would also enhance investor protection by strengthening oversight of these companies."

According to the provisions of the bill, the smaller companies would be regulated by the SEC, state policies, and the Sarbanes-Oxley Act. On the Net

House of Representatives
www.house.gov

U.S. Securities and Exchange Commission
www.sec.gov

New York Stock Exchange
www.nyse.com

Facebook comments:

  
 

Article ID: 120196

Article Title: SOX Exemption Extended

Comment not found for this article......
+ Add Comment

Related Artilces:
Whole Foods Market, Inc., Scheduled to Merge with Wild Oats Markets, Inc.
English-Only Workplace Policies
Underpaid Worker Lawsuits Increase
$2.9 Billion Settlement Reached in Tyco Case
Why Hiring an In-House Counsel Can Help Your Business
The Good Times Still Roll Thanks to a Strong Corporate Sector
Corporate Legal Hiring is on the Rise
Fraud Charges Filed Against Former General Counsel
KCS restructures legal department
Evolving Role of In-House Counsel: Adding Value to the Business
 
  • Share this story:


  • BlinkList
  • blogmarks
  • del.icio.us
  • Digg
  • Facebook
  • Google
  • Sphinn
  • MySpace
  • NewsVine
  • Simpy
  • StumbleUpon
  • Technorati
  • E-mail this story to a friend!
  • Print this article!
  • Faves
  • Furl
  • Netvouz
  • Slashdot
  • Spurl
  • Yahoo! Buzz



 
 

Shoot for the moon. Even if you miss it, you will land among the stars.