Non - Profit Organizations Client Alert: Massachusetts Attorney General Proposes Corporate Governance Bill for Public Charities
5/5/2005
Massachusetts Attorney General Tom Reilly today proposed a bill directed at enhancing the governance of public charities organized to operate in Massachusetts. Entitled "An Act To Promote The Financial Integrity of Public Charities," the bill borrows liberally from both the Sarbanes-Oxley Act, which imposes certain Federal standards on the governance of publicly traded U.S. companies, and from the final "intermediate sanctions" rules under the Internal Revenue Code, which impose a host of substantive and procedural requirements on tax-exempt entities as they go about setting compensation of their key executives.
To review key features of this proposal click here.
