[BC] FM Power Amps

[R A Meuser]

True but without a SOX audit, I can see a number of areas covered in S O 
that would not be necessary while still being responsible to banks and 
insurance companies.



Mike McCarthy wrote:
> 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.
>> >