How does the passing of the Sarbanes-Oxley Act affect shareholders, directors, and officers of a corporation? Provide a specific example and support your answer with reference to the act.© BrainMass Inc. brainmass.com June 4, 2020, 2:32 am ad1c9bdddf
The main way in which the shareholders are affected is by receiving reliable information, and the overall improvement in the quality of information. SOX demands compliance, and any issues of non-compliance are dealt with by the SEC and the FASB with penalties and other consequences. This acts in favor of the shareholders, who are able to receive relevant information that is transparent. The directors and officers must follow certain ...
The solution discusses how the passing of the Sarbanes-Oxley Act affects shareholders, directors, and officers of a corporation. Examples are also provided. This solution also includes references.