David Nelson, Big4.com
June 28, 2010
A deeper reading of today’s Supreme Court judgment reveals two critical points:
One
PCAOB Board members are removable by the Securities and Exchange Commission (SEC) only for good cause. However, the Court had an issue with how the Board members could not be removed by the President of the United States, even for good cause. Since PCAOB was considered part of Government, it had to function in sync with the President’s agenda, and thus he should have full power over appointing anyone and removing anyone he chose from the PCAOB hypothetically for any reason. The Congress of the United States through the Sarbanes Oxley Act, in effect prevented the President from removing PCAOB members and thus fully managing the Executive Branch. This was against the Constitution’s fundamental separation of powers, thus unconstitutional.
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