In a move aimed at reining in accounting improprieties of Chinese-based companies listed on the U.S. Stock Exchange, legislators from both parties are pushing a bill through Congress that would force foreign-based companies to submit to oversight by the U.S. Public Company Accounting Oversight Board (PCAOB).
The legislation (S.945), which proposes to amend a section of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7214), unanimously passed the U.S. Senate by voice vote May 20 and is now before the House. In a sign of bipartisan support, a companion bill, filed by U.S. Rep. Brad Sherman (D-Calif.), is also awaiting action in the House.
