A bipartisan bill in Congress that would ease Sarbanes-Oxley reporting demands on small businesses is a welcome move, according to William H. Venema, a corporate attorney at Epstein Becker Green Wickliff & Hall, P.C.

The odds of the bill passing are good, since this is the bill’s third incarnation in Congress in three years.

“The cost of complying with Sarbanes-Oxley has caused many companies to abandon plans to go public or to list on overseas exchanges, both of which are dangerous trends,” said Venema. “When Congress feels the political heat of an issue, it often responds in a way that can best be described as an overreaction. When the heat cools down, it is often a good idea to take a second look at the laws that were passed. The new bill is a realization that SOX went too far and stifled small business under reporting requirements.”

[1] Morningstar: Bipartisan COMPETE Act is an Overdue Reform of Sarbanes-Oxley, Says Epstein Becker Green Wickliff & Hall Attorney