The Supreme Court unanimously upheld the constitutionality of the Public Company Accounting Oversight Board which was established with the passing of the Sarbanes-Oxley Act of 2002. However, the court was concerned with the tenure of the board members and in a 5-to-4 split decision, it gave the Securities and Exchanged Commission the authority to fire any of the PCAOB board members without cause. Before the ruling, the SEC could only fire a board member when there was good cause.
Michael Doan
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