Sarbanes-Oxley Act of 2002
On July 30, President Bush signed into law the Public Company Accounting Reform and Investor
Protection Act of 2002, more commonly known as the Sarbanes-Oxley Act.
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It applies to publicly
traded companies and adds a comprehensive set of reporting and ethics requirements to the
Securities and Exchange Act of 1934. It also adds stiff criminal penalties for violations.
While the new law is not aimed specifically at relocation programs or policies, there is one
provision of the Act, (Section 402), that is relevant to the relocation issue. This particular
provision prohibits corporations from making loans (“personal loans”), made directly or in-directly
to “executive officers” except in a few limited circumstances. |
