[BC] FM Power Amps

[Mike McCarthy]

I do agree the matter of going private greatly reduces the amount 
bureaucracy and mindless paperwork required of a business. But S-O Act 
applies where applicable to everyone. Auditors, banks/financial 
institutions, and insurance companies need to comply with the applicable 
provisions of the Act for them to operate. To them, a client is that 
without regards to private or public. Though there are differences in how 
they're handled and the amount of documentation needed. The auditors and 
banks must have the same basic documentation regardless.  To what degree is 
based on the level of insurance and type of insurance underwriting 
needed.  It's the crossover of assumed risk from private to public which 
gets messy.  (And that's where the loss prevention aspects and procedures 
come into play.)

Even privately help companies can suffer the same officer and/or 
shareholder missives/losses as a public company. It's just the 
repercussions are typically limited, not widely known, or even publicized 
unless it involved the ongoing operation of the concern and/or a HUGE 
payout by a publicly held firm. Thus, there is limited or no "public" 
exposure to blind sided equity losses such as those experienced by Enron, 
et. al.  That's one of the biggest risks with private operations.  All the 
eggs and risk are held by a few people or a single person.  Not spread out 
and easily disposed on a market.

The more spread out, the more S-O applies.

MM

At 09:04 AM 1/5/2008 -0500, Douglas Pritchett wrote
>Another nice thing about a privately held company: no Sarbanes-Oxley
>compliance crap.
>--
>Douglas B. Pritchett (who works for a publicly traded company)
>radiofool at gmail.com
>
>
>On Jan 5, 2008 6:57 AM, Mike McCarthy <Towers at mre.com> wrote:
>
> > Recall several threads have discussed the frugality of some owners
> > regardless of their equity's underwriting. And the trend is towards
> > privately held companies which thumb their nose at Wall St. and the daily
> > lemming knee jerking seen there.
> >
> > MM
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