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ALL BUSINESS: Rolling Back Sarbanes-Oxley Corporate Reform Law Will Hurt Investors

Critics trying to build support for a rollback of corporate reform laws argue that they’re way too costly and have taken all the fun out of doing business in America. Those are lame excuses.

The latest rant comes from Shutterfly Inc. chairman Jim Clark. He said he is leaving the online photo company because the Sarbanes-Oxley law has taken reform “too far” and was crimping his ability to lead the way he wanted.

Next time he reads about another company swept up in the stock-options backdating scandal or hears of increased fraud in foreign financial markets, then maybe he’ll wake up to the benefits of reform.

Sarbanes-Oxley — or Sarbox, as it’s come to be known — was passed in 2002 after scandals that led to the collapse of Enron, WorldCom and others. It has forced companies to rethink how they handle everything from their disclosure of information to shareholders to the independence of their boards.

It’s despised in many corners of corporate America. Those who complain often focus on the time and expense needed to put policies and procedures in place. Of particular hatred is Section 404, which is designed to ensure companies’ books are in order by forcing them to take on the laborious task of reviewing their internal controls.

Yahoo!: ALL BUSINESS: Sarbanes-Oxley Is a Must