The Sarbanes-Oxley Act

The Sarbanes-Oxley Act Was created on July 30th 2002, by Senator Paul Sarbanes and Representative Michael Oxley, who drafted the bill. It followed a series of high profile scandals. Its objective is to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws.

The Sarbanes-Oxley Act is mandatory every organization small and large must comply.

Sarbanes-Oxley is a direct result of Enron, WorldCom and various other accounting scandals of the 1990's.

In essence, Sarbanes-Oxley gives corporate boards far less flexibility than they once had while simultaneously leaving executives with far fewer reasons to want to be a board member. If you are a successful executive late in your career, the benefits of lending your considerable expertise as a board member no longer outweigh the risks to your net worth.

Without a doubt, the intent of Sarbanes-Oxley is admirable, and sorely needed. However, the practical functioning of this legislation leaves much to be desired.

In far too many companies, the board of directors consists of "yes" men and woman who parrot the will of the Chairman and CEO. Most board members have been in their positions for considerable periods of time, and forums do not exist that encourage both an active participation in the business matters of the firm and the investigation and questioning of critical risk management processes.

The Sarbanes-Oxley Act is split in to a number of sections each highlighting the different rules and regulations each organization must implement.

John Parsons is founder of http://CorporateNarc.Com?. The mission of http://www.CorporateNarc.Com? is to educate the public in consumer affairs and to provide consumers with up-to-date business information. In addition we hope to ensure better services for the consumer by exposing business fraud and corruption, as well as unfair and deceptive business practices.

This article my be reproduced as long as the author's name and url to http://www.Corporatenarc.com are present at the end of the article.

---

Transporting Troops in the Future

Currently when we transport troops we use large cargo planes... Read More

Prison Abuses on Good Muslims

Well we have certainly been reading a lot about prison... Read More

Hawala, or The Bank That Never Was

I. OVERVIEWIn the wake of the September 11 terrorist attacks... Read More

What could Macedonia Learn from a Tiger? Asian Tigers and Uninterrupted Economic Growth

The first reaction of economies in transition is a sharp... Read More

National ESRI Policies

Many are very impressed with the NIMA (National Imagery and... Read More

Defending Middle Eastern Oil Refineries and Assets

An idea to defend oil infrastructure in the Middle East... Read More

Maryland Lawyers and Politicians Want More Regulations

We know that in Maryland, which some call "Merry Land"... Read More

Why One May Not be able to Locate Your Lost Money in the States Unclaimed Property Database

With respect to the States' databases, you may not locate... Read More

Chinese Military Build Up - Sun Tzu and Chinese War Machine

We are currently seeing a build up in China of... Read More

How Can We Prevent Black Outs and Protect the Grid?

The idea is to have all the important items with... Read More

Victims of Child Support

"Similar to Medieval Inquisitions, judges have been given the authority,... Read More

To Grow Out Of Unemployment

There is a connection between economic growth and unemployment. There... Read More

Count Rumford

Why did FDR say Benjamin Franklin, Thomas Jefferson and Count... Read More

Philosophical Thoughts from a Road Warrior; Part II

Continued thoughts while driving down the road in a huge... Read More

Population Control and Water Supply Issues

As we increase our populations every new soul will require... Read More

Fear, Controversy and Chaos in the Media

Most modern day media stories containing fear, controversy and chaos... Read More

So How Far Have We Come? Here are some of the 2001 Anti Terrorist Projects

An article in Information Week in January 14, 2002 discussed... Read More

The World of Diplomatic Backstage

De-classification of official documents have been a routine practice in... Read More

NASA Budget Space Shuttle Thoughts

Regarding the issues with the Space Shuttle and the in... Read More

The Politics of American Public Education and Why Dramatic Progress Still Eludes Us

The current political efforts aimed at improving the American public... Read More

Abu Ghraib: Our Surprise is the only Surprise

As pictures and videos surface showing young American soldiers humiliating... Read More

John Roberts ? Supreme Court Nominee

President Bush's selection of the Hon. John Roberts is an... Read More

The Gun Control Debate

The gun control debate in America is a battle between... Read More

Another Round of EU-Iran Talks Starts April 10 - Will Iran Be Referred To The UN Security Council?

Iran's objection to ratifying the International Atomic Energy Agency's Additional... Read More

The United States Government Owes Arthur Anderson 16 Billion Dollars

Since the court case was over turned against Arthur Anderson... Read More

The Gay Male Agenda for Political Dominance

I would like to pose a question. I am unsure... Read More

Homeless, Trash, Drugs and Transient Issues

In Police Magazine I read a great article about transient... Read More

The Ugly American Returns!

Originally published in 1958, "The Ugly American" (Lederer & Burdick)... Read More

Bill OReilly: You Got This One Wrong!

I like Bill O'Reilly. I do. I have read two... Read More

Cloaking Giant Airships is Possible, Why Stop There?

We know we can cloak a giant airship from those... Read More

The Divided Language

I was dismayed to learn the other day, that my... Read More

Fuel Prices at the Pump: That is not the problem, Natural Gas Prices are high too

The price at the gas pump is certainly on everyone's... Read More

News Media Misguided or Just Plain Liars?

Last week, the media coverage called the airplane crash in... Read More