Author Archives for NACD

How Small-Cap Directors Can Surmount Challenges, Capitalize on Opportunities

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While legislation—such as the Jumpstart Our Business Startups Act (JOBS Act) and Sarbanes-Oxley (SOX)—has eased some of the burdens small companies face when looking to go public, many of these companies now face the challenge of establishing effective governance structures. Limited resources and smaller staffs can lead to blurred lines between operations and oversight. Additionally, recruiting the right talent can also be difficult since small-cap companies may compete against their larger peers for talent. Though lesser in market cap, these companies are growing in relative number. Small-cap companies compose nearly 80 percent of U.S.-listed public companies—4 out of 10 companies... Read More

Update on PCAOB Activity

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This week, the Public Company Accounting Oversight Board (PCAOB) formally issued proposed rules on audit reporting standards (Docket 029: Improving Transparency Through Disclosure of Engagement Partner and Certain Other Participants in Audits). Following a concept release originally issued in 2009, the proposed rule would require the engagement partner—along with any additional firms that participated in the audit—to be disclosed in the audit report. The window for public comment is open until January 9, 2012. The PCAOB also has several outstanding concept releases that have the potential to change the relationship between auditors and the board of directors. The comment period... Read More