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Sarbanes-Oxley Act
12-01-2004, 05:22 PM,
#1
Sarbanes-Oxley Act
For our younger members a brief introduction to the SOX or the Sarbanes-Oxley Act,.. a major component of the 'Corporate Governance' ideology

The Sarbanes-Oxley Act of 2002 (HR 3763), signed into law on 30 July 2002, is considered the most significant change to federal securities laws in the United States since the New Deal. It came in the wake of a series of corporate financial scandals, including those affecting Enron, Arthur Andersen, and WorldCom. The law is named after Senator Paul Sarbanes and Representative Michael G. Oxley.

Its major provisions include


Certification of financial reports by CEOs and CFOs

Ban on personal loans to Executive Officers and Directors

Accelerated reporting of trades by insiders

Prohibition on insider trades during pension fund blackout periods

Disgorgement of CEO and CFO compensation and profits

Additional disclosure

Auditor independence, including outright bans on certain types of work and pre-certification by the company's Audit Committee of all other non-audit work

Criminal and civil penalties for securities violations


Whilst addressing a number of domestic concerns, the Act has been criticised by foreign regulators for seeking jurisdiction over their national affairs.



"Allah does not change the state of people unless they change what is within themselves" Quran 1311
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12-01-2004, 11:30 PM,
#2
 
hmmm.... Its nice to see such a great information about SOX but how do u think that PRACS what effects will be occured to other relevent bodies & committies like Supervisory Board etc.& whether it is applicable in U.K. ? and also whether it is the requirement of CARPORATE Governance policiers or company's internal affairs or matters.? If u have any other information about that ACT then plz paste further.. ur response will be appreciated ..


ASIF ALI
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12-03-2004, 08:32 PM,
#3
 
Because a lot of Fortune 100 companies are listed on the SEC in the US,.. SOX is a requirement now for all their subsidaries and associates all over the world. So I would say that SOX has a worldwide effect and not just in the US. Ofcourse local variants and guidelines on SOX style have sprung up in other countries too, so depends what the local regualtions have to say...

SOX is not a çompany's internal matter anymore,,, regulations pretaining to the act must be abided to stay within the guide lines of the SEC

"Allah does not change the state of people unless they change what is within themselves" Quran 1311
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12-03-2004, 11:07 PM,
#4
 
hmm ... thanks Dear, for giving such a good information

ASIF ALI
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12-06-2004, 07:13 AM,
#5
 
<BLOCKQUOTE id=quote><font size=1 face="Verdana, Tahoma, Arial" id=quote>quote<hr height=1 noshade id=quote>
For our younger members a brief introduction to the SOX or the Sarbanes-Oxley Act,.. a major component of the 'Corporate Governance' ideology

The Sarbanes-Oxley Act of 2002 (HR 3763), signed into law on 30 July 2002, is considered the most significant change to federal securities laws in the United States since the New Deal. It came in the wake of a series of corporate financial scandals, including those affecting Enron, Arthur Andersen, and WorldCom. The law is named after Senator Paul Sarbanes and Representative Michael G. Oxley.

Its major provisions include


Certification of financial reports by CEOs and CFOs

Ban on personal loans to Executive Officers and Directors

Accelerated reporting of trades by insiders

Prohibition on insider trades during pension fund blackout periods

Disgorgement of CEO and CFO compensation and profits

Additional disclosure

Auditor independence, including outright bans on certain types of work and pre-certification by the company's Audit Committee of all other non-audit work

Criminal and civil penalties for securities violations


Whilst addressing a number of domestic concerns, the Act has been criticised by foreign regulators for seeking jurisdiction over their national affairs.



"Allah does not change the state of people unless they change what is within themselves" Quran 1311
<hr height=1 noshade id=quote></BLOCKQUOTE id=quote></font id=quote><font face="Verdana, Tahoma, Arial" size=2 id=quote>

and from where i can download whole act?

There is a will. There is a way.
www.sarfraz.cjb.net
0333-4502662
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04-01-2005, 01:35 PM,
#6
 
i am studying the sarbanes-oxley compliance and its a pain in the butt for u s accountants
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04-01-2005, 07:12 PM,
#7
 
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Sarfaraz</i>
<br /><blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote">
For our younger members a brief introduction to the SOX or the Sarbanes-Oxley Act,.. a major component of the 'Corporate Governance' ideology

The Sarbanes-Oxley Act of 2002 (HR 3763), signed into law on 30 July 2002, is considered the most significant change to federal securities laws in the United States since the New Deal. It came in the wake of a series of corporate financial scandals, including those affecting Enron, Arthur Andersen, and WorldCom. The law is named after Senator Paul Sarbanes and Representative Michael G. Oxley.

Its major provisions include


Certification of financial reports by CEOs and CFOs

Ban on personal loans to Executive Officers and Directors

Accelerated reporting of trades by insiders

Prohibition on insider trades during pension fund blackout periods

Disgorgement of CEO and CFO compensation and profits

Additional disclosure

Auditor independence, including outright bans on certain types of work and pre-certification by the company's Audit Committee of all other non-audit work

Criminal and civil penalties for securities violations


Whilst addressing a number of domestic concerns, the Act has been criticised by foreign regulators for seeking jurisdiction over their national affairs.



"Allah does not change the state of people unless they change what is within themselves" Quran 1311
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

and from where i can download whole act?

There is a will. There is a way.
www.sarfraz.cjb.net
0333-4502662
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
The Sarbanes-Oxley Act was signed into law on 30th July 2002, and introduced highly significant legislative changes to financial practice and corporate governance regulation. It introduced stringent new rules with the stated objective "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, the prime ones being
- Most public companies must meet the financial reporting and certification mandates for any end of year financial statements filed after November 15th 2004 (amended from June 15th).
- smaller companies and foreign companies must meet these mandates for any statements filed after 15th July 2005 (amended from April 15th).

The act is actually named after its main architects, Senator Paul Sarbanes and Representative Michael Oxley, and of course followed a series of very 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" (Quote President Bush).

The Sarbanes-Oxley Act itself is organized into eleven titles, although sections 302, 404, 401, 409, 802 and 906 are the most significant with respect to compliance (Sarbanes Oxley section 404 seems to cause most concern) and internal control. In addition, the Act also created a public company accounting board.

Perhaps one of the most remarkable aspects of this legislation however relates to its profile. It is very much in the public and media arena. The focus is certainly intense in this respect, creating yet another clear motivation for compliance. There is simply no escaping it!

A copy of the Sarbanes-Oxley Act itself can be obtained in PDF format from <b>http//news.findlaw.com/hdocs/docs/gwbush/sarbanesoxley072302.pdf</b>

---------------------------------------------
“Little minds are tamed and subdued by misfortune; but great minds rise above it.”
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04-06-2005, 03:06 AM,
#8
 
SARBANES OXLEY SLOWS IPO ISSUE - WALL STREET JOURNAL 31 MARCH 2005

Some companies in the US are finding that the Sarbanes-Oxley Act is slowing their progress towards a listing on the stock market. The additional costs and requirements of the legislation have persuaded the companies to take private-equity money rather than opting for a fast initial public offering of stock. While they are still aiming for an eventual IPO, the companies are taking extra time to make sure their houses are in order. Consequently, private-equity investors are being given more opportunities to buy into companies before they go public. Also, Sarbanes-Oxley has made it harder for some small companies to attract outsiders to sit on their boards. “The environment is such that outside directors who don’t need to do these kind of things – who are wealthy and successful – conclude that they don’t want to put their fortunes and reputations at risk in the environment we’re in,” says Bruce Evans, managing partner at private-equity and venture capital firm Summit Partners.


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