The Sarbanes-Oxley Act
The Sarbanes-Oxley Act (or SOX, as it is commonly known) is a piece of legislation that was introduced and signed into law in 2002, in response to the accounting scandals perpetrated by companies such as Enron, Tyco, and WorldCom. The purpose of SOX is to restore investor confidence and protect both companies and investors by providing a set of 11 sections designed to strengthen standards for publicly traded companies.
Under the law, employees who notice illegal discrepancies in their company have an obligation to report them. If you or someone you love has been laid off or fired because of a legal report, the Austin employment attorneys of The Melton Law Firm, may be able to help. Contact us today by calling 512-330-0017.
There are eleven sections, or titles, of the Sarbanes-Oxley Act, each of which is meant to protect investors from unscrupulous accounting practices. The segments include provisions to:
- Establishing a Public Company Accounting Oversight Board
- Establishing standards for third-party auditor independence
- Placing senior executives personally responsible for the accuracy of corporate finances
- Enhancing the punishment for corporate fraud
- Protecting whistleblower employees who come forward to give evidence against companies
Collectively, these elements, along with several others, serve to protect investors by forcing companies to be more responsible for their financial operations.
If you or someone you love has been fired illegally in violation of the Sarbanes-Oxley Act, the Austin employment attorneys of The Melton Law Firm may be able to help you get the financial compensation you deserve. To learn more about what we may be able to do for you, contact us today by calling 512-330-0017.