High Court Rules Oversight Of SOX Board Insufficient

Law360, New York (June 28, 2010, 11:08 AM EDT) -- The U.S. Supreme Court ruled Monday that removal restrictions on an oversight board created by the Sarbanes-Oxley Act of 2002 are unconstitutional under the separation of powers doctrine, but did not go so far as to dissolve the board.

Under the 5-4 decision, the Public Company Accounting Oversight Board may continue to function as before, but its members may be removed at will by the U.S. Securities and Exchange Commission, which appoints them to the position.

The decision, penned by Chief Justice John Roberts, said that...
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