United States businesses are subjected to specific rules which help ensure that they continue to operate ethically and within the bounds of the law. How does the Sarbanes Oxley Act affect foreign corporations, if at all? In thoughtful detail why these companies should or should not be entitled to be exempt from this rule?
SOX affects some foreign corporations. If the foreign corporation is traded on the U.S. stock exchange and their market capitalization is greater than $75 million, they are required to comply with all provisions of the SOX act. If the foreign corporation is traded on the U.S. stock exchange but does not meet the $75 million mark, they are not required to comply with SOX, although they are encouraged to do so to attract additional U.S. investors. When the provisions were first announced for the SOX act involving foreign corporations, many foreign ...
The solution explains how Sarbanes Oxley Act affect foreign corporations, and why these companies should or should not be entitled to be exempt from this rule. This solution is 373 words.