The Impact of Sarbanes-Oxley on Private Companies and Corporate Governance Best Practices | Practical Law

The Impact of Sarbanes-Oxley on Private Companies and Corporate Governance Best Practices | Practical Law

This Note examines the provisions of the Sarbanes-Oxley Act of 2002 (SOX) that apply to both private and public companies. It also examines how SOX has elevated the standard of conduct for many private companies in the areas of corporate governance and financial oversight and compliance. This is because many large private companies are voluntarily choosing to comply with some or all of the SOX provisions that were specifically intended for public companies. Some of these provisions are enhanced liabilities for document destruction, fraud and white-collar crime. Furthermore, this Note discusses the benefits a company can reap in complying with SOX. In addition, this Note discusses the regulatory burdens under SOX and how SOX affects private companies' best practices.

The Impact of Sarbanes-Oxley on Private Companies and Corporate Governance Best Practices

by Megan N. Gates, Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
Law stated as of 10 Aug 2011 • USA (National/Federal)
This Note examines the provisions of the Sarbanes-Oxley Act of 2002 (SOX) that apply to both private and public companies. It also examines how SOX has elevated the standard of conduct for many private companies in the areas of corporate governance and financial oversight and compliance. This is because many large private companies are voluntarily choosing to comply with some or all of the SOX provisions that were specifically intended for public companies. Some of these provisions are enhanced liabilities for document destruction, fraud and white-collar crime. Furthermore, this Note discusses the benefits a company can reap in complying with SOX. In addition, this Note discusses the regulatory burdens under SOX and how SOX affects private companies' best practices.