And so the US Supreme Court has finally given its ruling on whether Sarbanes-Oxley is unconstitutional. And reading it through, you would have to say that the Supremes are sitting on the fence.
The Free Enterprise Fund, a free-market pressure group, had filed a lawsuit claiming that SOX violates the separation-of-powers mandate under the US constitution. The argument goes that the Sarbanes-Oxley legislation, passed in the wake of the Enron and WorldCom scandals, creates a body that regulates the accounting industry, the Public Company Accounting Oversight Board (PCAOB), without giving the president power to appoint the members of the body.
That's the kind of stuff lawyers love to talk about but it's also important. If the Supreme Court agreed with the free marketers, it would have thrown out the law which governs US business.
See full Article.
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