Introduction and Background



  • The Sarbanes-Oxley Act became law on July 30th 2002. It introduced highly significant legislative changes to the regulation of corporate governance and financial practice. It established stringent new rules, to “protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws”.

    The Sarbanes-Oxley Act became law on July 30th 2002. It introduced highly significant legislative changes to the regulation of corporate governance and financial practice. It established stringent new rules, to “protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws”.
    It also introduced a number of deadlines:

    • Most public companies must meet the financial reporting and certification mandates for any end of year financial statements filed after June 15th 2004
    • the equivalent date for foreign and smaller companies is April 15th 2005
      The act is of course named after its main architects, Senator Paul Sarbanes and Representative Michael Oxley. It followed a series of high profile scandals, such as Enron. It is also intended to “deter and punish corporate and accounting fraud and corruption, ensure justice for wrongdoers, and protect the interests of workers and shareholders”.
      Perhaps one of the more remarkable aspects of this legislation, however, relates to its public profile. It is very much in the media and public arena… yet another motivation for full compliance!

Log in to reply