TITLE IV - ENHANCED FINANCIAL DISCLOSURES
SEC. 407. DISCLOSURE OF AUDIT COMMITTEE FINANCIAL EXPERT.
(a) RULES DEFINING "FINANCIAL EXPERT". - The Commission shall issue
rules, as necessary or appropriate in the public interest and consistent with
the protection of investors, to require each issuer, together with periodic
reports required pursuant to sections 13(a) and 15(d) of the Securities Exchange
Act of 1934, to disclose whether or not, and if not, the reasons therefor, the
audit committee of that issuer is comprised of at least 1 member who is a financial
expert, as such term is defined by the Commission.
(b) CONSIDERATIONS. - In defining the term "financial expert" for
purposes of subsection (a), the Commission shall consider whether a person has,
through education and experience as a public accountant or auditor or a principal
financial officer, comptroller, or principal accounting officer of an issuer,
or from a position involving the performance of similar functions -
(1) an understanding of generally accepted accounting principles
and financial statements;
(2) experience in -
(A) the preparation or auditing of financial statements of
generally comparable issuers; and
(B) the application of such principles in connection with
the accounting for estimates, accruals, and reserves;
(3) experience with internal accounting controls; and
(4) an understanding of audit committee functions.
(c) DEADLINE FOR RULEMAKING. - The Commission shall -
(1) propose rules to implement this section, not later than
90 days after the date of enactment of this Act; and
(2) issue final rules to implement this section, not later
than 180 days after that date of enactment.
About OpenPages
OpenPages is the leading provider of Governance, Compliance and Risk
Management solutions
for Sarbanes-Oxley Compliance, Financial Controls Management, General
Compliance Management, Operational
Risk Management and IT
Governance.
The company’s solutions provide the visibility, decision support and
control to improve accountability, better manage risk, achieve compliance
with numerous regulations, improve operational performance and align strategies
to ensure better results.
Market-leading corporations in financial services, manufacturing, telecommunications,
media/entertainment, retail/consumer, energy, high technology, health services
and life sciences rely on OpenPages to help them achieve sustainable governance,
risk and compliance management -- enabling them to become well-governed businesses.
Founded in 1996, the company is headquartered in Waltham, Massachusetts, with
regional offices throughout North America and international offices in London, Munich, Paris, Tokyo and Hong Kong.
For more information on OpenPages' suite of business governance software solutions
or to register for an online demonstration, please call 781-693-5999 or visit
www.openpages.com.
|
