IMPACT OF THE SARBANES-OXLEY ACT ON U.S. CORPORATE GOVERNANCE
In response to the many corporate scandals uncovered since 2000, the U.S. Congress passed the Sarbanes-Oxley Act in June 2002. This act was designed to protect shareholders from the excesses and failed oversight that characterized failures at Enron, Tyco, WorldCom, Adelphia Communications, Qwest, and Global Crossing, among other prominent firms. Several key elements of Sarbanes-Oxley were designed to formalize greater board independence and oversight.