How to Avoid Running Afoul of the SEC
Part 1: The CFO as Control Person Written by By Craig P. Ehrlich, JD and Joanne D Williams, PhD, CPA
SEC enforcement initiatives can take the form of targeting specific executives at issuers for violations of the securities laws. In this first of a two-part series addressing hazards for CFOs, the authors discuss the circumstances of CFOs found to be “control persons,” who can be legally responsible for material misstatements or omissions in the financial statements even if they are unaware of them.
Successful CFOs need a broad set of skills, including experience in general management, strategy, corporate development, and international operations. With these myriad responsibilities, CFOs face increased hazards, especially given the SEC’s increased scrutiny of their …