Sarbanes–Oxley Act (SOX) (2002)

1) Link to the Text of the Act
Read the statute (15 U.S.C. § 7201 et seq.)

2) Why It Was Done
Passed in response to corporate scandals like Enron and WorldCom, SOX aimed to restore investor confidence by improving corporate governance, financial disclosures, and accountability of executives and auditors.

3) Pre-existing Law or Constitutional Rights
The Securities Acts of 1933 and 1934 required disclosures but lacked strong penalties for fraud and weak oversight of auditors. SOX created new structures and stricter standards.