Law Profs Say SEC Cannot Exempt Small Companies

Law360, New York (March 30, 2006, 12:00 AM EST) -- A group of 20 law professors has jumped into the debate over whether the U.S. Securities and Exchange Commission can exempt small companies from certain provisions of the Sarbanes-Oxley Act, sending a letter to SEC Chairman Christopher Cox stating the agency does not have the power to do so.

In the letter, the professors claim that the SEC does not have the authority to exempt small companies from an annual internal controls review mandated by Sarbanes-Oxley.

The letter says that the internal controls provision does not...
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