Proposed Changes in Corporate and Financial Disclosure

The bankruptcy of Enron and the subsequent indictment of Arthur Andersen LLP have led to the reconsideration of many long-standing rules related to corporate disclosure and the practice of auditors. The current environment virtually ensures that change will take place for almost every public company in how they disclose certain information to the public. The changes could also affect the obligations and liabilities of individuals serving as officers and directors. The following is a short summary of potential rule changes that the Securities and Exchange Commission (the "SEC" or the "Commission") may adopt in light of the recent events. This Legal Alert also briefly discusses the plan put forth by President Bush to change corporate disclosure, as well as items of legislation currently under consideration by Congress.