The SEC adopted rules in November to improve public companies' disclosure of the processes they follow in appointing directors and the means by which securities holders can communicate with them (www.sec.gov/rules/final/33-8340.htm).

* The SEC adopted rules in November to improve public companies' disclosure of the processes they follow in appointing directors and the means by which securities holders can communicate with them (www.sec.gov/rules/ final/33-8340.htm). Among the rules' provisions--which took effect January 1--are, for example, requirements that each company disclose

** Whether members of the committee nominating directors satisfy independence requirements and what minimum qualifications and standards the company expects of director nominees.

** Whether the company has a process by which shareholders can communicate with directors and--if not--an explanation why and whether the company screens such communications and--if so--in what way.

The commission also approved rules the New York Stock Exchange and the Nasdaq stock market adopted to strengthen listed companies' corporate governance standards (www.sec.gov/ rules/sro/34-48745.htm). They tighten the definition of director independence and require the majority of a listed company's board members to comply with the stricter standards. The rules also mandate and facilitate independent director oversight of corporate governance, auditing, director nomination and compensation functions.

* For single-click access to further coverage of the news stories listed here, visit the Journal of Accountancy Web site at www.aicpa. org/pubs/jofa/joahome.htm.

* For news from the AICPA and state societies, visit www.cpa2biz. com, which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites.

Three Times the Charm

When asked how many of an
applicant's references they usually
checked before making
a hiring decision,
senior
managers
said

Three             62%
Two               18%
More than three    8%
Don't know         5%
None               4%
One                3%

Source: Accountemps, www.accountemps.com, 2003.

Note: Table made from pie chart.