![]() Supreme Court declared unconstitutional the provision of SOX allowing removal of Board members only “for cause.” The majority concluded that SOX violated principles of the separation of powers because it improperly shielded the Board from direct Presidential oversight, given that the President could remove an SEC commissioner only “for cause” and the Commission, in turn, could remove a Board member only “for cause.” The Court remedied this constitutional deficiency by invalidating these tenure restrictions and thus making members of the Board removable by the Commission at will. #The public company accounting oversight board free#08-861 (June 28, 2010) (“ Free Enterprise Fund”), plaintiffs challenged the constitutionality of the Board and sought an injunction preventing the Board from exercising its powers. Public Company Accounting Oversight Board et al., No. The Board’s members are appointed by the Securities and Exchange Commission (the “Commission”) and, in accordance with SOX, could be removed by the Commission only “for cause.” In Free Enterprise Fund et al. One of the primary changes instituted by the Sarbanes-Oxley Act of 2002 (“SOX”) was the creation of the Public Company Accounting Oversight Board (the “Board”) to regulate participants in the accounting industry and to promulgate accounting and auditing rules. ![]() Supreme Court Concludes That Only the Tenure Provisions of the Sarbanes-Oxley Act Governing the Removal of PCAOB Members Are Unconstitutional Constitutionality of the Public Company Accounting Oversight Board: U.S. ![]()
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