OPPapers.com

Sarbanes-Oxley Act

SARBANES-OXLEY ACT
Introduction
Business is one among the essential sectors of a nation’s existence. The economy depends wholly upon the activities of the whole commerce which includes traders, consumers, investors, stock holders, bank, insurance, among others. All of these persons and entities are necessary in the daily existence of commerce. The commerce, being an important sector, affects the entirety of the nation’s productibility and the wellness of the people as well. This is so because a shrink of commerce would mean loss for the government and the people, either public or private. A moribund of business would affect to the burden of the consumers. This can be related to the problem encountered by the world on the shortage of oil. In which case, the increase in price of oil in the world market affected the prices of the basic commodities in most parts of the world. This only shows the exceptional influence of commerce in one nation.
Specifically, the whole commerce is composed largely of companies or corporations. Each company has its own line of business and caters different needs of the consumers. Having a vital role in the world of commerce, companies have to live in accordance with laws that govern business. Most importantly, company activities and organizations should protect fairly the interests of every member of a corporation. In line with this, the stockholders who entrust their money by investing in one or several corporations should honestly be taken cared of. In one company, every member, starting from the highest position down to the employees plays a vital role. Behind company’s organization are the financial providers who are referred as stockholders, shareholders, or investors.
By definition, stockholder is a person or corporation owning shares of stock in a corporation or mutual fund (Investor Words.com, n. pag.). They invest their wealth in a company which they believe to be reputable and financially profiting. So that in return,...