Discuss in brief the developments of corporate governance in U.S.A.

Years Development 1977: The Foreign Corrupt Practices Act Provides specific provisions for systems of internal control 1979: US Securities Exchange Commission Prescribed mandatory reporting on internal financial control 1985: Treadway Commission Emphasized the need of putting in place a proper control environment, desirability of constituting independent boards and its committees and objective internal audit function. As a consequence, the Committee of Sponsoring Organisations (COSO) took birth. 1992: COSO issued Internal Control - Integrated Framework It is a framework to help business and other entities assess and enhance their internal control system 2002: Sarbanes Oxley Act The Act made fundamental changes in virtually every aspect corporate governance and severe penalties for willful default by managers and auditors in particular. The Dodd-Frank Wall Street Reform and Customer Protection Act, 2010 Vote on Executive Pay and Golden Parachutes: Gives shareholders a say on pay with the right to a non-binding (advisory) vote on executive pay and golden parachutes (acquisitions). This gives shareholders a powerful opportunity to hold accountable executives of the companies they own, and a chance to disapprove where they see the kind of misguided incentive schemes that threatened individual companies and in turn the broader economy.