Supreme Court Ruling on SOX 2870

  • In case you haven’t seen this yet, the Supreme Court ruled today on the Sarbanes-Oxley case that was argued before the court earlier this year. The court ruled that the limitations on the SEC to remove board members from the PCAOB violated the Constitution’s separation of powers mandate, but that the rest of the Act is constitutional. Sounds like the result will simply be that the SEC will now have the power to remove PCAOB board members at will. Doesn’t appear that any other parts of the Act are affected by the ruling.

  • The only thing that has changed is that the Securities and Exchange Commission will now have the authority to remove board members at will (instead of removing them for ‘good cause’).
    We are pleased that the decision allows the PCAOB to continue without interruption to carry out its important mission of overseeing public company audits said PCAOB Acting Chairman Daniel L. Goelzer.

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