Sarbanes-Oxley News & Developments
US Regulators Adopt New Corporate Auditing Rules by their First Annual MeetingSome exceptions for foreign firms on US Exchange
> > The new rules require directors who sit on a companys Audit Committee to come from OUTSIDE the company.The Audit Committee must be responsible for hiring, paying, supervising and firing outside accountants, who must report directly to the committee, not the companys chief executive or other senior managers. The Auditing Committee also must set up procedures for handling complaints by company employees, including ananymous complaints, regarding accounting matters.
Publicly listed companies will be required to comply with the rules by their first annual meeting after January 15, 2004, but not later than October 31, 2004.
Foreign private issuers and small businesses will have until July 31, 2005, to comply. Moreover, foreign companies listed on the US exchanges will also be allowed some exceptions under the new rules, according to the SEC release.
April 1, 2003 SEC news release
US Securities and Exchange Commission
Washington, D.C.
Source: Distributed by the Office of International Information Programs, US Dept. of State
Published:2003-04-03
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