SEC: No Sarbanes Oxley Exceptions
The SEC announcement (HT Sox First) says this:
….. ultimately all public companies will be required to comply with the internal control reporting requirements of Section 404.
There’s lots of window-dressing and promises of improved assistance and guidance, but the bottom line is that the Commission is in essence forcing costly big-company control systems and practices onto small public companies.
Many small companies will conclude that it’s not worth being public any more, and many other companies considering going public will say “never mind.” This is not progress, and is not good for the economy.
And many companies are choosing to base themselves overseas. And small companies are finding it to be very difficult, in terms of accounting and data operations, to do business with the larger publicly-held ones. SOX has a huge negative, distorting impact on the way business is transacted.
Comment by Brendan — May 22, 2006 @ 9:54 pm
#1, and if they don’t base overseas, many at least list their stocks overseas.
I’d be interested in any elaboration and/or links on how small and I assume non-public companies are being sucked into SOX-like controls and procedures.
I do know the accounting profession is doing its part to increase the burdens in that area:
Article
My comment (4th item)
Of course, their interest in imposing this is purely altruistic (/sarcasm).
Comment by TBlumer — May 22, 2006 @ 10:14 pm