The Supreme Court has raised doubts about the validity of part of the anti-fraud law enacted in response to Enron and other corporate scandals early this decade.
The court heard arguments Monday in a case over the composition of the board that was created to tighten oversight of internal controls and outside auditors following accounting scandals at Enron, WorldCom, Tyco International and other corporations.
A small Nevada accounting firm and an anti-tax group brought the challenge to the 2002 Sarbanes-Oxley law, arguing that the board created by the law violates the Constitution's separation of powers mandate because the president cannot appoint or remove its members.
