Private companies choosing Sarbox
While listed companies complain, private businesses embrace the benefits of controvesial act
An increasing number of private companies are choosing to comply with the
Sarbanes-Oxley Act, even though they are not required to, it has been reported.
Despite many publicly-traded corporations claiming the measures are expensive
and burdensome, with some avoiding listing in the US or looking to escape the US
market because of the demands, others are now opting in to the requirements of
the act, according to the Wall Street Journal.
Reasons for private companies moving to Sarbox range from having investors
who hope the company will soon go public, to believing the measures will make
their businesses more efficient. Pressure from lenders and customers, as well as
a desire to prevent fraud, have also been listed as reasons.