Audit Committees in the United States are facing increased demands from many quarters in 2015, which expand their responsibilities, expose them to greater shareholder and regulatory scrutiny and potential liabilities.
This Legal Update focuses on three issues that should be considered by Audit Committees of public companies in 2015: (i) Internal Investigation Privilege and Confidentiality, (ii) Expanding PCAOB-Mandated Rules for Audit Committees, and (iii) Continued ISS Corporate Governance Scrutiny of Audit Committee Members.
On June 4, 2010, the Division of Corporation Finance of the U.S. Securities and Commission updated its Compliance and Disclosure Interpretations (C&DIs) regarding Securities Act sections, Securities Act rules, Securities Act forms, Regulation S-K, Exchange Act rules, Exchange Act Form 8-K, and Regulation FD. We have selected some of the key questions and answers from the updated C&DIs and set them forth below.
American corporations are currently witnessing a sea change in their corporate governance. Over the past several years institutional and activist shareholders have pursued and partially achieved significant alterations in the balance of power between shareholders and incumbent boards of directors, with further potentially fundamental changes yet to come.