Private Companies: 4 Lessons From Sarbanes-Oxley Act

Many public companies subject to the provisions of Sarbanes-Oxley Act of 2002 aren't happy with the increased paperwork and the higher compliance costs that have come with the legislation. Moreover, the thrust and spirit of the Act is reaching beyond companies trading on Wall Street. Some Sarbanes-Oxley requirements also are serving as models that private company - which are not forced to comply with the Act - are following to improve their own operations. The difference is that private companies - small, medium and large - are able to take on parts of the Sarbanes-Oxley Act as their own initiatives, without the threat of legal action for noncompliance, and still achieve some benefits.