Does Sar Box apply to small companies 324



  • Does SAR-BOX apply to small corporations who’s shares are not publicly traded on the Stock exchange?



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  • It may not directly affect you but companies that you deal with may ask if you are SOx compliant if they are public. I have already started to see requests for business with the compliant question attached.



  • There’s no clear answer. Let’s say it depends. If you’re an subsidiary and you’re somewhat material to your Mothers balance sheet, than you’r in the game. In that case it doesn’t matter what size your company has. If you’re an independent company and not listed you don’t have to think about sox at all.



  • Let me add something. It is very likely that smaller Companies will be soon joining the SOX effort. Just recently the PCAOB has appointed several co-chairs for small and public companies. They’re supposed to investigate the possible impact of SOX for those companies. So it’s only a matter of time.



  • I keep reading on this forum that SOX does not apply to small companies but I have also read that the guidelines regarding ethics issued by the Commission in Nov, 2004 indicate that ‘all organizations, whether publicly or privately held, and of whatever nature’ must train employees who include ‘the members of the governing authority, highlevel personnel, substantial authority personnel, the organization’s employees, and, as appropriate, the organization’s agents.’
    So, not only is and ethics compliance program required, but training must be continual.
    This is definitely overkill on behalf of the ‘commission,’ but apparently it is the rule and in definite contradiction to everything else posted on this thread.
    Any experts, PLEASE tell me I’m wrong and explain why.
    Thanks-
    Catherinetnc
    private company
    getting ready to develop compliance program for ALL employees - including the widget makers on the factory floor.



  • If you ever plan to move your company from ‘private’ to ‘public’, you may want to consider reviewing the SOX compliance to keep you abreast of the Act. Now I’m not saying that you need to hire a bunch of consultants or start loosing sleep. Just make sure that you and your company are aware of the regulations and possible changes for the future.
    Jeff Cunningham


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