Which of the following is NOT a component of the Sarbanes-Oxley Act?

The Sarbanes-Oxley Act (SOX) was enacted to restore public confidence in corporate governance and financial disclosures. One of its core objectives is to ensure accountability among corporate executives and directors regarding the accuracy of financial statements.

The correct answer identifies that full protection against lawsuits for corporate directors is not a component of the Sarbanes-Oxley Act. In fact, SOX imposes stricter penalties for corporate fraud and does not absolve directors from accountability when they are involved in misleading financial practices. Rather than providing blanket immunity, the Act requires enhanced financial disclosures and holds executives personally responsible for inaccuracies in reporting.

Limitations on specific types of corporate distributions, prohibitions against knowingly making false filings, and stipulations regarding benefits during periods of misleading disclosures or blackout periods are all aspects of SOX aimed at enforcing better corporate governance. These provisions are designed to prevent manipulation of financial information and protect investors, while emphasizing the importance of integrity in corporate management.