The Sarbanes-Oxley Act was signed into law on July 30, 2002, largely in response to a number of major corporate and accounting scandals, the effects of which are still being felt throughout the US economy. The Act—which has resulted in major changes to compliance practices at nearly 85 percent of large U.S. multinational companies—requires executives, boards of directors and auditors to take precise measures to bring about greater corporate accountability and transparency.
However, in the years since its passage, many believe that the Act may have imposed unnecessarily complex rules and regulations on US businesses—rules that, while they have certainly created higher standards of corporate governance and responsibility, have done so at a cost. Businesses, and the boards that run them, now face a plethora of ever-evolving, and often confusingly complex policies.
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