Resource Center
Sarbanes-Oxley Act of 2002
OneSource Relocation
On July 30, President Bush signed into law the Public Company Accounting Reform and Investor Protection Act of 2002, more commonly known as the Sarbanes-Oxley Act.
It applies to publicly traded companies and adds a comprehensive set of reporting and ethics requirements to the Securities and Exchange Act of 1934. It also adds stiff criminal penalties for violations. While the new law is not aimed specifically at relocation programs or policies, there is one provision of the Act, (Section 402), that is relevant to the relocation issue. This particular provision prohibits corporations from making loans (“personal loans”), made directly or in-directly to “executive officers” except in a few limited circumstances.
For more information on this topic please click on the Employee Relocation Council’s (ERC) website.