Corporate & Securities Law

One-year Delay on 404 in the Works

After a year of listening to lawmakers hound him for another delay of the date when small companies must comply with the internal-control provision of the Sarbanes-Oxley Act, Securities and Exchange Commission Chairman Christopher Cox says he plans to supply such a reprieve.

He intends to ask his fellow commissioners to put off for one year the moment when companies with a market capitalization below $75 million must start complying with the Section 404, he told Rep. Nydia Velazquez, who has been requesting such a decision.

Out of the four-member commission, Cox has at least the support of one fellow Republican, Kathleen Casey, who earlier this week called for a 404 delay. The SEC is short one commissioner following Roel Campos' departure in the fall.

Without an affirmative vote, smaller publicly traded companies are slated to submit their 404 management reports on 10-Ks filed on or after December 15, with auditor-attestation reports to be filed a year from now.

One-year Delay on 404 in the Works

Full post as published by inside Sarbanes Oxley on December 12, 2007 (boomark / email).