The objective of the following article is to comment on the Sarbanes-Oxley Act of 2002 (“Act”) from a transatlantic point of view and to discuss its effects on foreign companies as far as theoretical or practical impacts are already visible at this early stage.
It is an attempt to show the compatibility of the Act with other legal systems, especially with the existing German regulations.
It is not the goal of this paper to point out the important changes regarding requirements in general.
In a first section (I) the author wants to describe briefly the reasons for enacting the Act and to present the problems that occur with some of the regulations contained therein.
In a second step (II), the author will outline the Act’s impacts on German and other European legal systems.
In a final conclusion (III) the author wants to use the “holdings” he worked out in the second part to discuss the reform and criticize some aspects of the Act in an international light.
Inhaltsverzeichnis (Table of Contents)
- I. Introduction
- 1. Context of the Sarbanes-Oxley Act
- 2. Presentation of the Topic
- II. Impact of the Act on Foreign Companies
- 1. Applicability to Foreign Firms
- 2. Compatibility with German Law
- III. Conclusion
- 1. Criticism
- 2. Suggestions
- 3. Closing Words
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The objective of this article is to analyze the Sarbanes-Oxley Act of 2002 from a transatlantic perspective, focusing on its implications for foreign companies. It aims to assess the compatibility of the Act with other legal systems, particularly German law, and to discuss both theoretical and practical impacts at an early stage of implementation.
- The impact of the Sarbanes-Oxley Act on foreign companies.
- The compatibility of the Sarbanes-Oxley Act with German and other European legal systems.
- An assessment of the Act's effectiveness and potential conflicts with other national laws.
- Critical analysis of specific sections of the Act and their implications for international business practices.
- Discussion of potential challenges and risks faced by foreign companies complying with the Act.
Zusammenfassung der Kapitel (Chapter Summaries)
I. Introduction: This introductory chapter sets the stage by explaining the context of the Sarbanes-Oxley Act's enactment in response to major corporate scandals. It highlights the Act's aims to improve corporate governance, increase disclosure requirements, and strengthen penalties for securities law violations. The chapter also introduces the article's main objectives: to examine the Act's impact on foreign companies, focusing on compatibility with other legal systems, particularly German law, and to discuss the practical and theoretical effects at this early stage of implementation. It lays out a roadmap of the subsequent sections, briefly previewing the discussion of the Act's background, its impact on foreign entities, and a concluding critical analysis.
II. Impact of the Act on Foreign Companies: This chapter delves into the Sarbanes-Oxley Act's implications for foreign companies. It establishes the Act's broad applicability to all U.S. and non-U.S. issuers with registered securities, regardless of their origin. The chapter focuses on the Act's impact on foreign public accounting firms, highlighting their subjection to the oversight board and regulations. It then analyzes the Act's compatibility with German law, using specific sections of the Act to compare them to relevant provisions in the German Handelsgesetzbuch (HGB) and Aktiengesetz (AktG). Key differences, particularly regarding internal control regulations and corporate responsibility, are discussed, illustrating potential conflicts and challenges for foreign companies operating under dual regulatory frameworks.
Schlüsselwörter (Keywords)
Sarbanes-Oxley Act, corporate governance, foreign companies, international law, German law, accounting regulations, audit oversight, securities laws, compliance, international conflicts of laws, corporate responsibility, financial reporting.
Frequently Asked Questions: Analysis of the Sarbanes-Oxley Act's Impact on Foreign Companies
What is the main focus of this document?
This document provides a comprehensive overview of the Sarbanes-Oxley Act of 2002, specifically analyzing its impact on foreign companies, particularly those operating under German law. It examines the Act's compatibility with other legal systems, discusses its practical and theoretical implications, and offers a critical analysis of its effectiveness.
What topics are covered in the Table of Contents?
The document is structured into three main sections: an Introduction providing context and objectives; a section detailing the impact of the Act on foreign companies, focusing on its applicability and compatibility with German law; and a Conclusion offering criticism, suggestions, and closing remarks.
What are the key objectives and themes of the analysis?
The main objective is to assess the Sarbanes-Oxley Act's implications for foreign companies from a transatlantic perspective. Key themes include the Act's impact on foreign companies, its compatibility with German and other European legal systems, its effectiveness, potential conflicts with national laws, and the challenges faced by foreign companies in complying with the Act.
What are the key findings regarding the impact of the Sarbanes-Oxley Act on foreign companies?
The Act has broad applicability to both US and non-US issuers with registered securities. The analysis highlights the impact on foreign public accounting firms, their subjection to oversight boards and regulations, and the potential conflicts arising from differences between the Act and German law (HGB and AktG), particularly regarding internal control regulations and corporate responsibility.
How does the document compare the Sarbanes-Oxley Act with German law?
The document compares specific sections of the Sarbanes-Oxley Act with relevant provisions in the German Handelsgesetzbuch (HGB) and Aktiengesetz (AktG), identifying key differences and highlighting potential conflicts and challenges for foreign companies operating under dual regulatory frameworks.
What are the concluding remarks and suggestions of the document?
The conclusion section offers a critical analysis of the Sarbanes-Oxley Act, including its criticisms and suggestions for improvement. Specific suggestions are not detailed within the provided preview.
What are the keywords associated with this analysis?
Key words include: Sarbanes-Oxley Act, corporate governance, foreign companies, international law, German law, accounting regulations, audit oversight, securities laws, compliance, international conflicts of laws, corporate responsibility, and financial reporting.
What is the intended audience for this document?
The intended audience appears to be academics and professionals interested in corporate governance, international law, and the impact of the Sarbanes-Oxley Act on multinational corporations.
- Arbeit zitieren
- Nick Oberheiden (Autor:in), 2003, The Sarbanes Oxley Act of 2002, München, GRIN Verlag, https://www.grin.com/document/20211
