Assignment Help 1985
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Hi,
I have been given an assignment on IT Governance and Law, where we have to identify the key issues within a fictional company. The company is a UK company, however the assignment has a whole paragraph talking about the US subsidiary (Pasted below)The company that you work for is a major international, high technology manufacturing company based in the UK that has offices in 20 countries, including the USA, to support the manufacturing, marketing and sales activities of the company. The wholly owned subsidiary in the USA employs some 2000 staff, designing and manufacturing products for the US market and also supporting the world-wide product market. The company has customers in 130 countries in a range of high technology fields; the company provides customer support offices in most of these countries, the staff of which are managed from the UK parent company by a dedicated, specialist Human Resources department
Could anyone advise me if based upon this it is fair to assume that Sarbanes Oxley legislation will apply to this company?
Regards
Ian Harrison
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HI Ian,
There is nothing that would specifically indicate that the company would have to comply with Sarbanes Oxley as it will depend on whether or not the UK Parent Company is floated on any of the US stock exchange markets or not.
if the company is floated on other stock exchanges, there is no requirememnt to comply, regardless of where its subsidiaries may be located.
If you were to make this assumption, it would be advisable to state your assumptions as to why the company is required to comply under Sarbanes Oxley (i.e conclusions as to why it is a foreign accelerated filer and when its first date of compliance would be: Year-ends on or after 15 July 2006).
Overall, it may be simpler to assume that the company is on the London Stock exchange and has to comply with UK and EU Corporate Governance riles, rather than having to detail the requirements of compliance under SOX.
Hope this helps
EMM
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yeah thats a big help cheers. I wasn’t 100% sure whether it had to comply just because it was a comapny within the US, so I think i’ll assume it is not.%0ACheers%0AIan