SEC Clarifies Effect of Whistleblower Definitions as New Bill Pushes Extension of Time to Enforce Securities Law Violations

On August 4, 2015, the Securities and Exchange Commission (the SEC) clarified a discrepancy in the interpretation of the securities laws regarding whether an individual who reports securities law violations must report misconduct to the SEC in order to constitute a “whistleblower,” who is entitled to protection under the anti-retaliation provisions in the 2010 Dodd-Frank […]

Can a privately-held company benefit from adopting internal controls over financial reporting as required by the Sarbanes-Oxley Act (“SOX”) even though it is not subject to SOX?

Yes. Section 404 of SOX requires the management of a public company to report on the effectiveness of the company’s  internal control procedures over financial reporting in reports filed with the SEC. Examples of internal controls include procedures to ensure that transactions are properly authorized and recorded and that assets are protected from unauthorized use. […]