President Bush Signs Landmark Corporate Governance and Accounting Reform Bill
Mondaq Business Briefing › United States Law Articles in English (2002)
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President Bush Signs Landmark Corporate Governance and Accounting Reform Bill
Article by Todd Eckland, Douglas J. Ray and Stanton D. Wong
On July 30, 2002, following near unanimous votes by the Senate and the House, President Bush signed the Sarbanes-Oxley Act of 2002. The Act, among other things, creates an independent Public Company Accounting Oversight Board to oversee the audit of public companies, which are subject to the securities laws, requires quicker and more extensive reporting with respect to an issuer's financial condition and trading of issuer stock by company management and mandates the independence of all audit committee members. The new law comes in the wake of successive revelations of misdeeds at a number of the country's largest public companies, which continue to destabilize United States securities markets.The Act is intended to prevent deceptive management and accounting practices by increasing criminal penalties for corporate wrongdoing and requiring disgorgement by the chief executive officer and chief financial...See the full content of this document
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