SOX Prohibition on Loans to Officers and Directors

On March 4, 2013, the SEC issued a no-action letter in response to a request for interpretive guidance regarding the applicability of Section 402 to a program that would allow directors and executive officers to obtain credit utilizing equity grants made by a public company issuer. Here's what this means.

18 minute readMay 24, 2013 at 01:31 PM
By
Laura P. Washburn
SOX Prohibition on Loans to Officers and Directors

Since the adoption of the Sarbanes-Oxley Act (SOX) in 2002, public companies and their advisers have been seeking guidance on Section 402 of the Act (codified as Section 13(k) of

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