The provision in the Sarbanes-Oxley Act that bans loans to corporate executives has drawn public attention recently, as one major company took steps to comply with the rule while another company was accused by a shareholder research firm of skirting key provisions of the law.
In case you’ve forgotten, Section 402 of Sarbanes-Oxley prohibits public companies from extending credit “in the form of a personal loan” to any director or executive officer (see complete text at right).
