NU Online News Service, June 28, 3:50 p.m. EDT
The Supreme Court, in a divided ruling on Monday, said part of the Sarbanes-Oxley Act of 2002 is "incompatible" with the Constitution.
The majority opinion written by Chief Justice John Roberts found that the Public Company Accounting Oversight Board (PCAOB), created as part of the act, violated separation of powers principles in the Constitution. The act makes it so the president "is no longer the judge of the board's conduct," Justice Roberts wrote, and therefore it is too difficult for the president to remove board members, who are appointed by the U.S. Securities and Exchange Commission.
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