Faced With SOX, Some Companies Go Private

Law360, New York (January 25, 2006, 12:00 AM EST) -- Is the Sarbanes-Oxley Act driving small companies out of the public markets? While some claim the Act has succeeded in restoring investor confidence, others claim it imposes an unnecessary burden on public companies. In fact, many argue that financial burdens caused by compliance with the Act have forced small companies to go private.

SOX, passed in 2002, was penned to protect investors by improving the accuracy and reliability of corporate disclosures. Corporate executives, board members and auditors are now required to precisely measure every financial detail...
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