Regulatory Enforcement

The Securities and Exchange Commission has published a sample letter to help companies understand how they should restate their financials to correct backdated stock option grants, making good on a promise last year to help the legion of companies struggling with the problem. In December, the SEC said it would offer guidance on a “catch-up […]

The Federal Trade Commission and the Federal Communications Commission may be part of the same government, but that hasn’t stopped them from reaching widely different conclusions about what is permissible when it comes to telemarketing. The FCC, for example, has taken the position that prerecorded telemarketing calls are allowed, as long as they are placed […]

Call it the other whistleblowing provision of the corporate-governance world: Section 10A of the Securities Exchange Act. While Sarbanes-Oxley might hog the spotlight when it comes to anti-fraud legislation, Section 10A has evolved into a quiet but powerful force to root out corporate misdeeds. Created as part of the Securities Litigation Reform Act of 1995, […]

With their combined call for a top-down, risk-based assessment of internal controls over financial reporting and a single, more focused audit opinion, the Securities and Exchange Commission and the Public Company Accounting Oversight Board are at least on the right path in curbing excessive auditing. But the call for a single audit opinion won’t, by […]

Unfortunately (at least in the view of public companies), the Securities and Exchange Commission has been very successful in its mission to create the illusion of three dimensions, or seemingly being everywhere at once. Its enforcement prowess is undeniable, and its tenacity is not to be underestimated. This means that many companies will (not may), […]

Court rulings in Delaware and by federal judges across the country had an impact on a wide range of corporate-governance issues in 2006. Compliance Week has compiled overviews of 10 of the most important court decisions over the past year and gathered expert insights into the possible implications for companies in 2007 and beyond. Business […]

The Public Company Accounting Oversight Board has proposed a series of new standards and rule changes that would steer auditors in a new direction for the controversial audit of internal control over financial reporting. At a Dec. 19 meeting, the board voted unanimously to propose a new standard to replace existing Auditing Standard No. 2. […]

Mixed reviews greeted the Department of Justice’s publication of new marching orders for federal prosecutors probing allegations of corporate wrongdoing. Under the “McNulty Memo,” issued last week, U.S. attorneys are supposed to seek the approval of Deputy Attorney General Paul McNulty before asking corporations to waive the attorney-client privilege or turn over sensitive documents that […]

The new federal rules on e-discovery certainly have a hold on compliance executives’ minds these days—both figuratively and literally. In effect since last week, the rules don’t specifically address the proper procedures needed to ensure that a company’s electronic data is “held” in the event of a lawsuit. But the dramatic change in how opposing […]

Any fears that the Delaware Supreme Court might be backing off its traditional protection of corporate directors were categorically put to rest earlier this month by a decision reinforcing the high standard that must be met to sue directors for failing to exercise sufficient oversight. According to experts, the ruling in the case—Stone v. Ritter—is […]