Illinois Business Entity Registration for Procurement

On January 1, 2009, two “pay-to-play” measures went into effect in Illinois. Public Act 95-971 (.pdf) requires any business whose state contracts and/or bids on state contracts exceed $50,000 annually (“Covered Entity”) to register with the Board by January 31, 2009. The registration includes the Covered Entity’s name and address; the name and address of […]

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Data Breach Costs $202 per Customer Record

PGP Corporation and Ponemon Institute issued their fourth annual U.S. Cost of a Data Breach Study. The study examined 43 organizations across 17 different industry sectors with a range of 4,200 to 113,000 records that were affected. According to the report,  data breach incidents cost U.S. companies $202 per compromised customer record in 2008, compared […]

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Report of Congressional Oversight Panel on Regulatory Reform

Modernizing the American Financial Regulatory System: Recommendations for Improving Oversight, Protecting Consumers and Ensuring Stability (.pdf) In response to the escalating crisis, on October 3, 2008, Congress provided the U.S. Department of the Treasury with the authority to spend $700 billion to stabilize the U.S. economy, preserve home ownership, and promote economic growth. Congress created […]

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Using the Attorney-Client Privilege to Protect Drafts of SEC Filings

Mintz Levin published a client alert about the Roth v. Aon case I mentioned a few days ago: Draft SEC Filings Can Be Protected From Discovery. The lawyers at Mintz have these recommendations: Disclosures that involve legal judgments, discussions of pending litigation, and business matters that the company must disclose for compliance purposes should be […]

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A Simple Strategy to Avoid Paying a Bribe

Alexandra A. Wrage writes on the WrageBlog about Simple Strategies to avoid paying a bribe: “Our informant carefully prepared himself to meet with a notorious bribe-demanding functionary for the first time. He scripted his approach to the exchange: (a) Stand quietly at the functionary’s little window until the functionary looked at him, (b) Smile confidently, (c) […]

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Investigating Complaints of Harassment

E. Jason Tremblay of Arnstein & Lehr LLP in Chicago put together an article in the ABA’s Business Law Today on how to limit a company’s exposure by Properly Investigating Complaints of Harassment. jason points out that an ineffective investigation can turn simple workplace humor into an expensive harrassment of retaliation complaint. He inserts a […]

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Books and Records Requirement for Investment Advisers

The proposed Hedge Fund Transparency Act would require private investment funds to maintain books and records that the SEC requires. Presumably, if the Act passes the SEC would promulgate some regulations addressing what it would require. One place to look would be Rule 204-2 under the Investment Advisers Act. The other place would be Rule […]

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The Group of Thirty Report on Financial Reform

The Group of Thirty released their latest report: Financial Reform – A Framework for Financial Stability.(.pdf) The report focuses on flaws in the global financial system and provides recommendations to improve the systems. The report project was led by Paul Volcker, Chairman, and Tommaso Padoa-Schioppa and Arminio Fraga Neto, Vice Chairmen. The rrport does not […]

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The Unexpected Benefits of Sarbanes Oxley

The April 2006 issue of the Harvard Business Review has an article by Stephen Wagner and Lee Dittmar on The Unexpected Benefits of Sarbanes Oxley. Although the article is somewhat dated when it talks about the second year under Sarbanes Oxley, it foretells some of the current thoughts in compliance. Compliance is good for business. Two […]

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Auditing Standard No. 5 for Smaller Companies

PCAOB released Staff Views for applying the provisions of PCAOB Standard No. 5 for audits of smaller, less complex public companies (.pdf) on January 23, 2009. Standard No. 5 is focused on assessing the effectiveness of internal controls over financial reporting. This Staff View of PCAOB Standard No. 5 discusses how to scale an audit […]

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