Butera & Andrews Forms Legislative Coalition to Modify Sarbanes-Oxley Corporate Governance Law's Treatment of International Firms; Focused Approach Needed.Business Editors/Legal Writers WASHINGTON--(BUSINESS WIRE)--Oct. 23, 2002 The Washington, D.C. law firm of Butera & Andrews has announced that it is forming a legislative coalition to seek to revise certain corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. requirements in the Sarbanes-Oxley Act See SOX. of 2002 as they affect international corporations and corporate officers. The Act requires non-U.S. firms listed in the U.S. to comply regardless of supervisory structures already existing in their home country. Serious penalties, including holding corporate officers criminally liable, are mandated when Sarbanes-Oxley is violated vi·o·late tr.v. vi·o·lat·ed, vi·o·lat·ing, vi·o·lates 1. To break or disregard (a law or promise, for example). 2. To assault (a person) sexually. 3. . The goal of the new Reciprocity reciprocity In international trade, the granting of mutual concessions on tariffs, quotas, or other commercial restrictions. Reciprocity implies that these concessions are neither intended nor expected to be generalized to other countries with which the contracting parties in International Accounting Coalition, which will include Canadian and European governmental and business interests, is to obtain targeted legislative relief from those provisions of the Act that its members believe are adequately covered by accounting conventions governing gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. non-U.S. firms. For example, the Coalition will advocate reciprocity and comity Courtesy; respect; a disposition to perform some official act out of goodwill and tradition rather than obligation or law. The acceptance or Adoption of decisions or laws by a court of another jurisdiction, either foreign or domestic, based on public policy rather than legal for international auditors rather than simply relying on the extra-territorial reach of the new U.S. law. International audit firms believe there is a strong case for exemption where they are already subject to strict corporate governance procedures in their home country jurisdictions. Butera and Andrews' Senior Partner, James J. Butera said, "A carefully targeted approach which takes into account the many positive elements of the Sarbanes-Oxley Act is needed. We plan to hold an early meeting with all the interested parties to plan a results-oriented legislative campaign. This effort is starting now so that the Coalition gets off to a fast start in the 2003 Congressional session." For companies interested in joining this Coalition effort, further details are available by contacting Butera & Andrews. |
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