What are the provisions under Sarbanes-Oxley Act 2002 for protection of Whistle Blowers?
CS Professional · Governance, Risk Management, Compliances and Ethics · PYQS · June 2023
What are the provisions under Sarbanes-Oxley Act 2002 for protection of Whistle Blowers?
Answer & Explanation:
Sarbanes Oxley Act of 2002 is an Act enacted by U.S. congress to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for other purposes. Section 302 of the said Act contains following provisions for whistle-blowers: Make it illegal to 'discharge, demote, suspend, threaten, harass or in any manner discriminate against' whistle-blowers. Establish criminal penalties of up to 10 years for executives who retaliate against whistle-blowers. Require board audit committees to establish procedures for hearing whistle-blower complaints. Allow the secretary of labour to order a company to rehire a terminated employee with no court hearing. Give a whistle-blower the right to a jury trial, by passing months or years of administrative hearings.
Topics: Whistleblower Protection
Related Questions in this Topic
- What are the Contemporary Global Trends on ESG? Highlight key points.
- What are the four fundamental principles of Business Ethics? Highlight benefits of Business Ethics.
- What are the classification and techniques of Internal Control?
- Discuss the initiatives for Integrated Reporting in India.
- Integrated reporting has gained significant importance in modern corporate governance. Explain why businesses need to ad...