Discuss the Sarbanes-Oxley Act and summarize if the Sarbanes-Oxley Act effectively protects stakeholders?
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One of the lasting impacts of the Sarbanes- Oxley Act was how it set up external monitoring systems to effectively protect stakeholders. In the establishment of Public Company Accounting Oversight Board, "the true intent of SOX is fully delivered" because internal and external stakeholders are protected from potential abuses and acts of negligence.
The article from The Hindu makes the case that the Indian version of the Sarbanes- Oxley Act, Companies Act, 2013, seeks to do the same thing. The Companies Act models itself after the Sarbanes- Oxley Act's desire to protect stakeholders. One way is through setting up external agencies to monitor corporation practices and the fiscal responsibility that must be present in order to substantiate the faith of both internal and external stockholders.
The articles suggests that to remedy corporate malfeasance in India, the Companies Act used the Sarbanes- Oxley Act as its inspiration. In doing so, the article makes the argument that since the Sarbanes- Oxley Act was effective in its use of external monitoring agencies designed to protect stakeholders, then using it as a model in India would be effective in protecting those whose interests are vested in Indian companies.
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