Simplifying the Core Sections of the Sarbanes-Oxley Act
Abstract:SOX or the Sarbanes Oxley Act was passed in 2002. The Act can best be described as a sincere repercussion of high profile financial scandals that stormed the U.S. economy that time and as a result of which U.S. almost lost its investors’ faith.
The aim, with which the Act was introduced, was to “protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws." With this objective, the Act became able to bring significant positive legislative changes to U.S. financial practices and also corporate governance regulation got changed in a better way.
The Sarbanes-Oxley Act has 11 titles which deal with a variety of issues starting from additional Corporate Board responsibilities to criminal penalties provisions. However, amongst all the provisions, sections 101, 302, 404, 409, and 906 are the pivotal ones.
