Some say new SEC regulations waste company time, money

Cost-Benefit

Federal regulations in response to Enron, WorldCom and other corporate scandals have been a huge waste of time and money for public companies, and they should be repealed as soon as possible.

That’s the view of Steve Sanghi, CEO of Chandler-based Microchip Technology and one of the East Valley’s most respected executives.

"Our competitors in other countries are dancing in the street," he said. "Our government is doing the job for them to make us less competitive."

The Sarbanes-Oxley Act of 2002 was passed by the Congress to crack down on corporate fraud. The biggest headache for public companies has been Section 404, which requires chief executives and chief financial officers to publish information annually on the scope and adequacy of their internal control systems with evidence that the systems can catch anything that could cause a financial misstatement.

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