Why would a nonpublic company consider adopting corporate governance provisions similar to that of a public company?
Many nonpublic companies are starting to voluntarily adopt certain key provisions of SOX that are geared toward oversight of internal controls and the financial reporting process. They feel pressure from those outside the organization, such as donors, lenders, investors and insurers who evaluate corporate governance in assessing the cost and availability of capital, as well as pressure from independent auditors, who evaluate the quality of corporate governance in their client acceptance procedures. Plus, they face pressures within the organization. In many cases, board members of nonprofit companies frequently serve on boards of public companies and, as such, view a SOX-like audit committee as being best practice for all companies and organizations, public and private alike. Not to mention that many states have adopted or are considering adopting SOX-like requirements for nonprofit organizations. Should all private companies and organizations seek to implement SOX-like corporate govern
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- Why would a nonpublic company consider adopting corporate governance provisions similar to that of a public company?
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