Rep. Ben Quayle from Arizona’s third district recently introduced H.R. 2941, the Startup Expansion and Investment Act, which will allow shareholders of public companies with market valuations below $1 billion to opt out of regulations within section 404 for the first 10 years after going public. The costs for complying with the requirements of this section of Sarbanes-Oxley can exceed $1 million for new companies and can cost them up to $20 million in loss of valuation.
