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Investors need protection and the Act regulates many areas of corporate governance, which among other things requires top management to assume a higher level of formal responsibility. According to the article, management cannot absolve themselves of the responsibility for the company's financial information. Management must also establish a system of checks and balances by introducing independent parties into corporate governance. The Act also requires a greater emphasis on preventing fraud. Keeping companies ethical benefits the stakeholders.
The Act may create a new standard of internal controls applicable to all corporations, even in absence of legislation...
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