What Caused Sarbanes-Oxley Act? The Sarbanes-Oxley Act of 2002 was passed due to the accounting scandals Why was Sarbanes-Oxley needed? The Sarbanes-Oxley Act of 2002, often simply called SOX or Sarbox, is U.S. law meant to protect investors from fraudulent accounting activities by corporations. Sarbanes-Oxley was enacted after several major accounting scandals in the early
How Has The Sarbanes-Oxley Act Had A Significant Impact On Corporate Governance? The act had a profound effect on corporate governance in the U.S. The Sarbanes-Oxley Act requires public companies to strengthen audit committees, perform internal controls tests, make directors and officers personally liable for the accuracy of financial statements, and strengthen disclosure. How has
Does A Corporation Can Be Held Liable For Personal Indebtedness Of A Shareholder? Does a corporation can be held liable for personal indebtedness of a shareholder? A corporation is an incorporated entity designed to limit the liability of its owners (called shareholders). Generally, shareholders are not personally liable for the debts of the corporation. Creditors