Sox Act of the United States - (Chinese and English)

Author: Zhang Anhua (Translation)
Publisher:
Publish Date: 2007-01-01
Features: The core of this act lies in regulating the behavior standards of listed companies and their internal governance models, while changing the "strong incentives and weak constraints" pattern for senior management and related stakeholders of listed companies, thereby enhancing the transparency and credibility of corporate financial statements. This act is considered one of the most significant adjustments in the U.S. securities legal system since the passage of the U.S. Securities Act of 1933, and is also regarded as one of the most stringent laws in the history of securities to date. Although the act allows companies with annual sales below $500 million to postpone submitting their internal control reports by one year, to July 15, 2007, Chinese enterprises must recognize the differences between themselves and U.S. companies, thereby proactively considering how to comply with the Sarbanes-Oxley Act as early as possible. This act serves as a crucial key to understanding the current state of U.S. securities market regulation. It is hoped that the translation and publication of this act can provide assistance to Chinese enterprises in strengthening internal controls and enhancing their competitiveness in listing and financing.