SEC concedes ground on Sarbanes-Oxley
The US Securities and Exchange Commission has conceded ground to several countries over the extra-territorial powers contained in the Sarbanes-Oxley Act.
The SEC yesterday bowed to pressures from countries such as Germany and Japan to maintain their current corporate governance practices, by proposing modifications to the recently established law.
Sarbanes-Oxley was expected to affect over 1,300 non-US companies that have listings on US stock exchanges.
One of the biggest concessions involved the independence of audit committees, which Germany objected to as its two-tier management structures often led to employee representatives making audit decisions.
Japan and Italy also complained that audit committees were not always staffed by board directors.