Recent legislative and regulatory initiatives, such as the Sarbanes-Oxley Act of 2002, Securities and Exchange Commission (SEC) proposals and rules, and proposed revised stock exchange listing requirements, have addressed weaknesses in corporate governance exposed by the major financial reporting issues raised by restatements and corporate failures, placing greater emphasis on the roles and responsibilities of boards of directors.
There have been legislative and regulatory initiatives including that of the Sabanes-Oxley Act.