Sarbanes-oxley act of 2002

8 
Sec. 101 
SARBANES-OXLEY ACT OF 2002 
(d) C
OMMISSION
D
ETERMINATION
.—The members of the Board 
shall take such action (including hiring of staff, proposal of rules, 
and adoption of initial and transitional auditing and other profes-
sional standards) as may be necessary or appropriate to enable the 
Commission to determine, not later than 270 days after the date 
of enactment of this Act, that the Board is so organized and has 
the capacity to carry out the requirements of this title, and to en-
force compliance with this title by registered public accounting 
firms and associated persons thereof. The Commission shall be re-
sponsible, prior to the appointment of the Board, for the planning 
for the establishment and administrative transition to the Board’s 
operation. 
(e) B
OARD
M
EMBERSHIP
.— 
(1) C
OMPOSITION
.—The Board shall have 5 members, ap-
pointed from among prominent individuals of integrity and 
reputation who have a demonstrated commitment to the inter-
ests of investors and the public, and an understanding of the 
responsibilities for and nature of the financial disclosures re-
quired of issuers, brokers, and dealers under the securities 
laws and the obligations of accountants with respect to the 
preparation and issuance of audit reports with respect to such 
disclosures. 
(2) L
IMITATION
.—Two members, and only 2 members, of 
the Board shall be or have been certified public accountants 
pursuant to the laws of 1 or more States, provided that, if 1 
of those 2 members is the chairperson, he or she may not have 
been a practicing certified public accountant for at least 5 
years prior to his or her appointment to the Board. 
(3) F
ULL
-
TIME INDEPENDENT SERVICE
.—Each member of 
the Board shall serve on a full-time basis, and may not, con-
current with service on the Board, be employed by any other 
person or engage in any other professional or business activity. 
No member of the Board may share in any of the profits of, or 
receive payments from, a public accounting firm (or any other 
person, as determined by rule of the Commission), other than 
fixed continuing payments, subject to such conditions as the 
Commission may impose, under standard arrangements for the 
retirement of members of public accounting firms. 
(4) A
PPOINTMENT OF BOARD MEMBERS
.— 
(A) I
NITIAL BOARD
.—Not later than 90 days after the 
date of enactment of this Act, the Commission, after con-
sultation with the Chairman of the Board of Governors of 
the Federal Reserve System and the Secretary of the 
Treasury, shall appoint the chairperson and other initial 
members of the Board, and shall designate a term of serv-
ice for each. 
(B) V
ACANCIES
.—A vacancy on the Board shall not af-
fect the powers of the Board, but shall be filled in the 
same manner as provided for appointments under this sec-
tion. 
(5) T
ERM OF SERVICE
.— 
(A) I
N GENERAL
.—The term of service of each Board 
member shall be 5 years, and until a successor is ap-
pointed, except that— 
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December 21, 2020 
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As Amended Through P.L. 116-222, Enacted December 18, 2020

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