Week 5 Individual Law241

University of Phoenix Material

MEMORANDUM

UNIVERSITY OF PHOENIX

DATE:

TO:

FROM:

RE: Sarbanes-Oxley 10 Years Later: Boards Are Still the Problem

Allen, F. E. (2014). Sarbanes-Oxley 10 Years Later: Boards Are Still the Problem. Retrieved from http://www.forbes.com/sites/frederickallen/2012/07/29/sarbanes-oxley-10-years-later-boards-are-still-the-problem/

ARTICLE SYNOPSIS

The article that I have chosen to synopsize is an article that I have found on “Forbes.com.” It is an article written on July 29th, 2012. The contents of the article revamp what Sarbanes-Oxley act of 2002 was all about. For instance all that it incurred is to have certification by CEOs and CFOs for companies financial reports. Prohibit any form of personal loans to executives or board members. Enhance criminal Penalties for executives that tamper or misreport financial statements. Require a code of ethics for CEOs and their financial officers. Disclosures of transactions involving management and stockholders. Lastly, establish audit committees that must be composed of independent directors. He then goes on to make his own views about how SOX of 2002 was not pushed higher and should include the following. Setting term limits for CEOs and directors so that the company doesn’t go stale and keeps new ideas rolling. Limit public company board services so that you don’t have profession board members who quit their day jobs and become board members on 3-4 boards so they make easy money. Lastly he adds requiring continued education for board members.

LEGAL ISSUE

In 1 to 3 sentences, identify the legal business issues raised in the article. It raised the question of can we do more to regulate businesses to be more ethical in the way a business is ran. Are there too many people making millions of dollars for one company when we should limit it. Should we stop the greed that is still taking over businesses and live fairly and creatively than just for the money?

MANAGERIAL...