In 2002, the United States Congress passed the Sarbanes-Oxley Act (SOX) to protect shareholders and the general public from accounting errors and fraudulent practices in enterprises, and to improve the accuracy of corporate disclosures. The act sets deadlines for compliance and publishes rules on requirements. Congressmen Paul Sarbanes and Michael Oxley drafted the act with the goal of improving corporate governance and accountability.
Whilst SOX has been widely perceived to regulate only publicly held companies, there are some provisions of SOX which expressly apply to privately held companies too. PathHub considers SOX corporate governance requirements to establish 'best practices', and includes such best practice in its Compliance Policy.