Published on January 7
What is the Sarbanes-Oxley Act?
The Sarbanes-Oxley Act of 2002, also known as “SOA” or “SOX” is a congressional act with established a series of laws aimed at improving corporate governance, reducing corporate fraud, and eliminating deceptive accounting practice. The main provisions of Sarbanes-Oxley can be divided into three categories:
Accounting Oversight: One of the primary reforms of Sarbanes-Oxley was the creation of the Public Company Accounting Oversight Board.
Corporate Governance Reforms: Sarbanes-Oxley includes a series of reforms …
Added in Corporations, Large Corporation, US Laws
Published on January 7
In certain situations, shareholders may find it advantageous to enter into agreements with other shareholders regarding how the company should be run or who will run the company. These agreements, known as “shareholder agreements” or sometimes “vote pooling agreements” or “block voting arrangements” are generally permissible and can pertain to a variety of topics. The specific rules governing shareholder agreements varies from state to state, however most states follow some version of the Revised Model Business Corporation Act (“RMBCA”). Section 7 of the RMBCA states the rules regarding shareholder agreements.
The most common types of shareholder agreements are:
Voting …
Added in Business Entities, Corporations, Helpful Business Info, Large Corporation
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