Scrapping Sarbox: voluntary measures offer efficient and effective protection without hobbling management.(REGULATION)

Chief Executive (U.S.),  January, 2008  by Epstein, Richard A.

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Modern CEOs always worry about the state regulation of their corporations. Unfortunately, these regulatory schemes have become more intrusive and less useful in recent years, because our legislators and judges often fail to understand how and why the public company reached its dominant position as a vehicle for large business enterprises. Quite simply, the winning formula rests on a one-two punch.

First, large corporate ventures depend on a rule of limited liability that restricts the liability of each shareholder to the amount that they have contributed to the corporation, thereby ...

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