Thursday, August 04, 2005
BOC faces £20m Sarbanes-Oxley compliance bill
Industrial gases group BOC said it faces higher than expected costs, totalling around £20m, over the next two years in order to bring the company into full compliance with the Sarbanes-Oxley (SOX) corporate governance regulations.
In the company's third-quarter results presentation to analysts, BOC chief executive Tony Isaac said he was "surprised" about the high corporate costs of compliance compared to first estimates.
The deadline for SOX compliance is September next year and BOC said it will have to spend £10m this year and another £10m in 2006 to bring its financial reporting and internal controls up to scratch.
In a conference call, Charles Spence, director of financial control at BOC, said of the group's increasing corporate costs: "One of the underlying drivers is the cost of compliance with Sarbanes-Oxley."
posted by Brian Moran @ 9:12 AM