Who does the Sarbanes-Oxley Act apply to?

The Sarbanes-Oxley Act applies to all public companies in the United States and extends its reach to international companies that are registered with the Securities and Exchange Commission (SEC). This legislation was enacted in response to financial scandals that shook public confidence in the securities markets and aimed to enhance corporate governance and financial disclosures.

The inclusion of international companies registered with the SEC is significant because it underscores the Act's intention to establish stringent financial reporting standards globally, promoting transparency and accountability for investors worldwide. Thus, any public company, regardless of whether it is based in the US or operates internationally but is listed in the US market, falls under the governance of the Sarbanes-Oxley Act. This comprehensive reach ensures that both domestic and foreign entities adhere to the same high standards of financial integrity, aligning with the goals of protecting shareholders and maintaining efficient markets.