SEC concedes ground on Sarbanes-Oxley

Link: Foreign bodies confront SEC over Sarbanes-Oxley

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.

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