the Law

Origins

With the the United States of America, the law of 2002 on the reform of the accountancy of the companies with dimensions and the protection of the investors still known under acronym SOX, Sarbox, SOA or according to the name of its promoters Loi Sarbanes-Oxley , are a federal law voted in answer to different the accounting scandals (Enron, Worldcom, etc) which have occurred recently who revealed at the great day the faults of the legislation financial Comptable and of the Entreprise S.

New obligations

The Law of the July 31st 2002 (Pub. L. No 107-204, 116 Stat. 745) known as Sarbanes-Oxley Act introduced:

• obligation for the presidents and the finance managers to certify the accounts personally;

• obligation to name administrators independent with the Committee of audit of the Board of directors;
• the framing of the particular advantages of the leaders (loss of the profit-sharing in the event of diffusion of inaccurate information, prohibition of the loans near the company, possibility given to the SEC - Securities and Exchange Commission, the regulatory agency of the American stockmarkets - to prohibit any social mandate for the leaders suspected of fraud).

This law also obliges to implement a Internal control being pressed on a conceptual framework. In practice the COSO is the reference frame more used.

Extraterritoriality

Because many not-American companies are with dimensions with the New York Stock Exchange, largest of the world purses, and fact subjected to this law, SOX has repercussions beyond the borders of the United States. It is besides why one speaks about Extraterritorialité about the repercussions of law SOX.

See the principal article: Governorship of company .

See too

• In France: the law on the new economic regulations of May 15th, 2001.
• In France: the Law of Financial Safety (2003-706 of August 1st, 2003), published with the OJ n° 177 of August 2nd, 2003
  Presentation of LSF (the law of financial safety): (site visited the 3/15/2007)
• In France: the law for the confidence and the modernization of the economy of July 26th, 2005.

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