Keller Quoted About Sarbanes-Oxley
James A. Keller, Partner in the Litigation Department and Chair of the Higher Education Practice Group, was quoted in this article about the Sarbanes-Oxley Act of 2002 (SOX).
SOX, which was proposed by U.S. Sen. Paul Sarbanes and U.S. Rep. Michael Oxley, is legislation passed in response to corporate scandals involving major corporate executives who misled their shareholders into believing their businesses were more stable than they actually were. The Act establishes new and modified standards for all U.S. public company boards of directors, management and public accounting firms.
The article outlines the provisions of SOX, and explains how the bill applies to higher education institutions, nonprofits, donors and stakeholders.
"Those who passed the law explicitly excluded nonprofits," Mr. Keller said. However, he believes that the key concepts of SOX should be implemented so that colleges and universities can demonstrate to students, parents and donors that they are committed to transparency, accountability and avoiding conflicts of interests.