Compliance issues - Public vs Private companies.

Last post 11-20-2007, 4:44 PM by LadyAnn. 4 replies.
Sort Posts:
  •  10-30-2007, 1:55 PM 2719

    erinkuntz is not online. Last active: 12-14-2007, 1:28 PM erinkuntz



    Top 150 Contributor



    Joined on 10-30-2007



    Posts 12



  • Compliance issues - Public vs Private companies.

    Hi,

    Can anyone tell me how being a privately held company vs a publicly held company affects compliance issues?   I am aware of what is expected as it relates to number of employees, is that regardless of public/private?  Also, how does it relate to Sarbanes - Oxley?  Do private companies have to be concerned with SOX? 

     

    Thanks 

  •  10-30-2007, 2:09 PM 2721 in reply to 2719

    regdunlop is not online. Last active: 06-16-2009, 9:10 AM regdunlop



    Top 10 Contributor



    Joined on 04-13-2007



    Posts 177



  • Re: Compliance issues - Public vs Private companies.

    publicly traded companies have more compliance requirements for sure. for example, there's sarbanes-oxley on ethics and exec comp disclosure requirements from the SEC. some privately held companies have followed the requirements as best practices.  both private and public companies abide by the same discrimination and wage and hour laws.
  •  10-31-2007, 11:54 AM 2737 in reply to 2719

    LadyAnn is not online. Last active: 30 Jul 2008, 4:09 PM LadyAnn



    Top 25 Contributor



    Joined on 10-18-2007



    Posts 96



  • Re: Compliance issues - Public vs Private companies.

    To answer your last question directly: No, private companies do not have to be concerned with SOX. 

    Other differences may include whether your financial statement is audited or just reviewed by an accountant; the relationship the BOD (Board of Directors) has to the company; as well as the internal procedures the company establishes.

    I am currently a private held company whose parent corporation is in the process of going public.  The number of changes that we have had to go through in the past two years is absolutely incredible.  I went from being reviewed by one auditor at the end of every calendar year, to being audited every quarter!  Thankfully, I don't have to worry about SOX as of yet (my parent corporation is in Taiwan), but I'm not that far away from being compliant.

     

     

  •  11-19-2007, 5:23 PM 2931 in reply to 2737

    TXHRGuy is not online. Last active: 05-23-2013, 4:36 PM TXHRGuy



    Top 10 Contributor



    Joined on 11-20-2007



    Posts 1,591



  • Re: Compliance issues - Public vs Private companies.

    LadyAnn:

    To answer your last question directly: No, private companies do not have to be concerned with SOX. 

     

    This is not entirely true.  There are parts of SOX that pertain to all companies, not just publicly traded companies.  The most onerous bits are all about publicly held companies but there are pieces strewn throughout the act that pertain to all business entities.

    Two important examples include the whistleblower protection and document retention parts, which  pertain to both public and private entities.

  •  11-20-2007, 4:44 PM 2983 in reply to 2931

    LadyAnn is not online. Last active: 30 Jul 2008, 4:09 PM LadyAnn



    Top 25 Contributor



    Joined on 10-18-2007



    Posts 96



  • Re: Compliance issues - Public vs Private companies.

    Thanks for the clarification.
View as RSS news feed in XML
Use of this site constitutes your agreement to the terms and condition specified in the HR.BLR.com Forum Agreement