Number: RL31879
Title: Securities Law: Sarbanes-Oxley Act of 2002 and Selected 108th Congress Bills Concerning Corporate Accountability
Authors: Michael V. Seitzinger and Elizabeth Bazan, American Law Division 
Abstract: On July 30, 2002, President Bush signed into law the Sarbanes-Oxley Act of 2002, P.L. 107-204. This law has been described by some as the most important and far-reaching securities legislation since passage of the Securities Act of 1933, 15 U.S.C. sections 77 et seq., and the Securities Exchange Act of 1934, 15 U.S.C. sections 78a et seq., both of which were passed in the wake of the stock market crash of 1929. The Act establishes a new Public Company Accounting Oversight Board which is to be supervised by the Securities and Exchange Commission. The Act restricts accounting firms from performing a number of other services for the companies which they audit. The Act also requires new disclosures for public companies and the officers and directors of those companies. Among the other issues affected by the new legislation are securities fraud, criminal and civil penalties for violating the securities laws, blackouts for insider trades of pension fund shares, and protections for corporate whistleblowers. The 108th Congress is also concerned with corporate responsibility, and several bills affecting such issues as SEC staffing, financial report certification, and corporate expatriation have been introduced.
Pages: 16
Date: Updated April 23, 2003