The Sarbanes-Oxley Act, 2002

United States of America Current 2002

Formally entitled the Public Company Reform and Investor Protection Act, 15 USC 7245 7256), the Sarbanes-Oxley Act or “SOX” was passed by the US Congress in July 2002. The “SOX” contains 11 different “titles” and imposed new reporting requirements for US-listed companies to increase corporate transparency (mainly corporate governance). A number of the Titles referenced the 1934 investor protection legislation and subsequent amendments and other federal laws. SOX Section 404 requirements for top executives to sign off on detailed internal controls is an example. The argument since adoption is that this and other rules may have imposed a regulatory burden on companies, for example by not explaining the scope of the internal and external checks required.

Scope

Governance

Industry sectors covered by the instrument

All/none specified

Organizations covered by the instrument

All listed companies

Issuer type

Financial Regulators

Type of instrument

Legislation

Mandatory or voluntary

Mandatory

The geographical scope

National/federal

Project Partners