Free Booklet Explains S-Ox To Directors
A guide to help keep board members from running afoul of the corporate governance provisions of the Sarbanes-Oxley Act has been released by Chubb Group of Insurance Companies in Warren, N.J.
The firm said its free 35-page booklet, "Loss Prevention Guidelines for Independent Directors," should help independent directors understand their expanding roles and the risks associated with serving on corporate boards, as well as best practices for corporate governance.
Violations of The Public Company Accounting and Investor Protection Act of 2002, better known as Sarbanes-Oxley, carry prison terms of up to 20 years.
Chubb said the legislation has redefined corporate conduct and the relationship between directors, officers, accountants, attorneys and analysts. While Sarbanes-Oxley was intended for publicly traded companies, many of its standards are now being applied to private and nonprofit companies, Chubb said.
"After Sarbanes-Oxley, independent directors want to know what is expected of them," said Andrew Pritchard, assistant vice president of Chubb & Son and worldwide manager for Personal Directors Liability insurance at Chubb Specialty Insurance.
Included in the booklet are: a section on selecting, recruiting and retaining independent directors; a discussion of the board committees on which independent directors may serve, such as audit, nominating, compensation; a section on providing financial protection for independent directors, such as corporate indemnification and directors and officers insurance; recommendations for corporate governance best practices
Copies of "Loss Prevention Guidelines for Independent Directors" are available through independent insurance agents or by calling (866) 282-9001 and requesting form number 14-01-0679.
Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, November 26, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
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