Frequently Asked Questions

What are the consequences for a corporate manager who refuses to take action when a lawyer reports a material violation of the law?

The consequences for a corporate manager who refuses to take action when a lawyer reports a material violation of the law can be severe. The SOX Act holds senior corporate managers accountable for their company's financial disclosures and requires them to certify that these disclosures accurately reflect the company's current financial condition. If a manager fails to take action on a reported violation, they could potentially face legal repercussions, including fines and imprisonment.