Requirement (SOX)
Section 304: Forfeiture of Certain Bonuses and Profits
Requirements SOX
Description
Description
If an issuer is required to prepare a restatement due to "material noncompliance" with financial reporting requirements, the chief executive officer and the chief financial officer shall "reimburse the issuer for any bonus or other incentive-based or equity-based compensation received" during the twelve months following the issuance or filing of the non-compliant document and "any profits realized from the sale of securities of the issuer" during that period.
Comment
Concerns: auditees