Sarbanes-Oxley Act: Amendment To Exempt Small Firms Passes House Committee

An amendment that would permanently exempt small public companies from complying with a key provision of the Sarbanes-Oxley Act advanced in Congress today. Such a waiver demonstrates the bankruptcy of our approach to reform.

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Comments

[RTIII]

This is bad.

Sarbanes Oxley IS a bad law and it needs fixing but NOT in the way this initiative is going.

First of all, if you're going to distinguish based upon market capitalization, that's dumb because market cap can change in days - but IF you're going to do it, the size proposed is WAY too high. Firms deserving a break are the ones with a market cap if, say $10M and smaller. Gross annual revenues would be a VASTLY better measure.

Secondly, ALL firms that are _Publicly_Traded_ should be under some kind of financial auditing system that contains some basic information and controls, it's just that the requirements of Sarbanes-Oxley are pretty onerous for small companies - way overkill for small firms - and the costs can easily consume the profit of a small firm. Real reform would keep financial information, audit controls, and responsibility but would be of an easier form for smaller firms.

Thirdly, if one REALLY wants to get at the heart of the problem and fix what's wrong, the solution is to make the executives AND Boards of Directors PERSONALLY responsible for a FIDUCIARY responsibility.

[studmoose]

These audit laws are ACTUALLY IN THE BEST INTEREST OF SMALL BUSINESS!

What is the ratio of small business faulires to those of larger corporations?

Most small businesses fail because they are mismanaged, they overextend themselves or there is internal theft. Having someone to pinpoint deficiencies and errors in a company only helps to guide them down the proper path - hopefully averting misfortunes.

The same misfortunes that would then take money from unsuspecting investors who might be sold false promises or false information. If you want public money, a company should prove they are LEGIT!

[studmoose]

$75M today, $250M tomorrow, $700M next year! You'll see.

If you are a publicly traded company, then proving you must prove your legit.

Look at Adler's last failure...

Back in 2004, NJ passed one of the toughest anti-predatory lending laws in the country. Shortly thereafter, then NJ State Senator Adler received $1,200 from special interests (Ameriquest). Working with another State Senator, Gerald Cardinale, Adler repealed many of the enforcements that helped fuel the Subprime Mortgage fiasco. It is rumored that this act directly aided in the failing of several NJ banks within months and others later on.

http://njrereport.com/index.php/2007/12/31/how-ameriquest-bought-nj-politicians/

There are numerous articles on this repeal of the NJ Predatory Lending Act of 2004, from The Philadelphia Inquirer (now you have to pay to read it on-line), and others, such as the Star-Ledger and NYT.

HOW MANY TENS OF THOUSANDS OF FAMILIES LOST THEIR HOMES BECAUSE OF HIM?

HOW MANY PEOPLE LOST THEIR JOBS AND LIFE SAVINGS BECAUSE OF HIM?

hOW MUCH DAMAGE DID $1,200 DO?

[tradethefed]

Goldman and Bank of America run the markets along with Geithner, and beagle boy Ben. There is no free markets, only welfare capitalism and socialism for capitalism.
http://financeopinionss.blogspot.com

[dadw5boys]

Seperation of Large and Small Corporation by what they report as Income ?????

Make them report everything and that might work !!!!!!!

[mcmutter]

Wasn't Madeoff a small firm ?

[vandegrasse]

Individuals aren't exempt. Why should any company be exempt? This is ludicrous!