 | The Isolated Offering A Newsletter of The Lebrecht Group, APLC |
| July 14, 2009 | Volume 09, Number 7 |
| In This Issue Is the PCAOB Unconstitutional? Small-Cap Securities Suits - Are you Covered? More How to Choose a Corporate Securities Attorney 5 Ways to Help Maintain '34 Act Reporting Compliance Seven Tips for Companies Going Public Through a Management-Underwritten Initial Public Offering View LinkedIn Profile for Brian A. Lebrecht, Esq. Archived Newsletters Forms
| Is the PCAOB Unconstitutional?On May 18, 2009, the United States Supreme Court agreed to hear Free Enterprise Fund v. PCAOB, a case that challenges the structure of the Public Company Accounting Oversight Board as unconstitutional. The PCAOB has been called many things, but is it unconstitutional, and if it is, what then?PCAOB Structure Formation of the PCAOB In 2002, in response to a series of accounting scandals including Enron and WorldCom, Congress hastily passed the Sarbanes-Oxley Act of 2002 (“SarBox”), which created the PCAOB (the “Board”) as a new entity to oversee the audits of public companies. Specifically, the Board’s purpose is “to protect the interests of investors and further the public interest in the preparation of informative, accurate, and independent audit reports for companies the securities of which are sold to, and held by and for, public investors.” Appointment and Removal of Board Members is Vested with the SEC The Board consists of five members who are appointed by the Securities and Exchange Commission (the “SEC”), after consultation with the Chairman of the Board of Governors of the Federal Reserve (currently Ben Bernanke) and the Secretary of the Treasury (currently Tim Geithner). Appointment is by a majority vote of the five SEC Commissioners. A member of the Board may be removed only upon a finding of good cause by the SEC...[more] Small-Cap Securities Suits – Are you Covered?
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