New Laws Force Corporate Governance Changes For Mutual Banks, Too
In response to the crisis of confidence precipitated by the bankruptcy, civil and criminal proceeding The Sarbanes-Oxley Act was signed into law. Partly because of Sarbanes-Oxley and partly on their own initiative, the Securities and Exchange Commission, have proposed rules to address the perceived shortcomings of current corporate governance and financial reporting practices. This article defines the guidelines for board composition, operations of board committee, formalizing policies, provisions of auditor independence. It provides a description on a statement "Boards should focus on the composition and charter for their nominating and corporate governance and compensation committees."