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SEC Panel Recommends Relaxing SOX For Small Firms

Law360 (April 20, 2006, 12:00 AM EDT) -- A U.S. Securities and Exchange Commission advisory group has recommended that the agency relax some of the requirements of the Sarbanes-Oxley Act of 2002 for small public companies, saying that the Act may place an overwhelming financial burden on the firms.

The Advisory Committee on Smaller Public Companies officially adopted a report issued last year, which recommends that the SEC relax the internal controls provision of SOX, Section 404, for smaller companies.

The advisory group's recommendation would completely exempt smaller companies—micro-cap companies with less than $125...
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