Sarbanes 404(b) Small Company Exemption Still Alive
By David Feldman at 17 June, 2010, 12:50 pm
Let’s give Barney Frank some credit. While everyone else is watching the oil continue to spill into the Gulf, there is some legislating going on down in DC. The conference committee working on securities industry reform is hard at work trying to reconcile the House and Senate approved versions of the bill. As you recall, the House version included a permanent exemption for smaller companies from the requirement in Sarbanes-Oxley Section 404(b) for auditors to review and attest to a company’s internal financial controls. The Senate version did not.
Well, Barney’s not ready to give up the fight on this. On behalf of the House conferees, two days ago he submitted an offer of proposed changes to the Senate bill. Presumably at this stage each side starts reducing the things they really care about.
Luckily, the Sarbanes exemption is still on Barney’s list, and the offer says: “Add the House provisions that exempt small issuers (less than $75 million in market capitalization) from the requirements of Sarbanes-Oxley Section 404(b) (House § 7606, p. 1417).” He also suggests certain studies be performed at the SEC on related matters.
Thanks to friend Lee Liebolt for directing me to this information. As any of you find out more let me know and I can get the word out!
The cost and burden of 404B on small public companies will do more hamr than good. Make they exemption permanent so that the only remaining backbone of the US economy can focus on its business, product develpment, marketing and customer support!