Making the Case For Compliance Programs at Privately-Held Companies
"It is important to note that the Guidelines, unlike the regulations promulgated by the Securities and Exchange Commission in response to SOX, in no way discriminate between publicly traded and privately held or closed corporations."
Since 2000, there has been an extraordinary level of interest in the issues of corporate governance, corporate ethics, and appropriate business conduct. Much of this discussion has been focused on publicly-traded companies, with the issuance of new rules and regulations by the Securities and Exchange Commission and passage of the Sarbanes-Oxley Act of 2002 ("SOX"). Many privately-held companies reviewed those rules and believed themselves, with some relief, to be exempt from all of the concern over corporate compliance plans. Indeed, many blame the current wave of companies going private on the rigors of SOX and the compliance movement.
However, those who argue that privately-held companies do not need to concern themselves with compliance are dangerously misguided. There are a number of reasons a company would want to have an effective compliance program. For example, a privately-held company may be feeling pressure from customers who ask their suppliers to certify to a code of conduct. Read more, complete the form below.