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Development of Corporate Governance in US (Cont) download (3) (Benefits,…
Development of Corporate Governance in US (Cont) 
Sarbanes-Oxley Act 2002
Aim:
:check:To protect investors by improving.
:check:Accuracy and reliability of corporate disclosures.
:check:Made pursuant to securities law and other purposes.
:check: Increase accountability of auditing firms to remain objective and independent of their clients.
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History
:explode:Introduced in the House as Corporate and Auditing Accountability, Responsibility and Transparency Act of 2002 by Mike Oxley on February 14, 2002.
:explode:Committee consideration by House Financial Services, Senate Banking
:explode:Passed the House on April 24, 2002.
:explode:Passed the Senate as the Public Company Accounting Reform and Investors Protection Act of 2002 on July 15, 2002.
:explode:Reported by the joint conference committee on July 24, 2002 agreed by the House on July, 25, 2002 and by the senate on July 25, 2002.
:explode:Signed into the law by President George W Bush on July 30, 2002.
New Requirements
:explode:Increasing number of independent members on the board.
:explode:Real time disclosure of material events.
:explode:Require CEO and CFO to certify financial statements and internal controls meet securities law requirements.
:explode:Strengthening oversight of financial reporting by audit committees.
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