Sarbanes-Oxley Requires All Companies to Rethink Document Retention

The Sarbanes-Oxley Act of 2002 will have companies and their boards and executives rethinking their document retention, as one of its provisions provides for criminal penalties of up to 20 years imprisonment and fines up to $10 million for anyone who:

knowingly alters, destroys, mutilates, conceals, covers up, falsifies, or makes a false entry in any record, document, or tangible object with the intent to impede, obstruct, or influence the investigation or proper administration of any matter within the jurisdiction of any department or agency of the United States or any case filed under [Bankruptcy Code], or in relation to or contemplation of any such matter or case. §802 of SOX which added §1519 to 18 USC.

These criminal penalties apply to everyone: Privately held businesses and public reporting companies; directors, officers, employees and other representatives of these businesses; and accountants, lawyers and other professionals providing services to these businesses. The penalties apply to individual persons with respect to their own records as well as their lawyers, accountants and other representatives.

For Further Information: http://www.sec.gov/spotlight/sarbanes-oxley.htm