Congress Gives Small Companies Permanent Exemption from Section 404(b)
June 23, 2010
Congress has granted permanent exemption from complying with Sarbanes-Oxley Section 404(b). The exemption covers companies with public floats of less than $75 million. The exemption was added to the financial reform bill after two Democratic senators, Tim Johnson of South Dakota and Blanche Lincoln of Arkansas, voted with the Republican minority over the objections of Sen. Christopher Dodd, chairman of the Senate Banking Committee. Over the years, the SEC has extended the exemption to small companies because of complaints about the rule's cost. But the waiver was set to expire this month after the SEC issued Release No. 33-9072 , Internal Control over Financial Reporting in Exchange Act Periodic Reports of Non-Accelerated Filers.