Amex Announces Approval of Enhanced Corporate Governance Standards

On September 13, 2002, the American Stock Exchange ("Amex") became the latest of the U.S. stock markets to announce that its Board of Governors has approved new measures for strengthening and enhancing its corporate governance standards for listed companies. Amex's proposals largely mirror proposals made earlier this summer by the New York Stock Exchange ("NYSE") and the Nasdaq Stock Market ("Nasdaq"), and, like the NYSE and Nasdaq proposals, aim to restore investor confidence in the integrity of the U.S. markets.

The proposals are intended to increase disclosure requirements for Amex-listed companies, and strengthen board oversight and audit committee responsibilities, as well as provide for increased shareholder rights. The goal of the reforms, according to Amex's Chairman and Chief Executive Officer, Salvatore F. Sodano, is to strengthen accountability, improve transparency, and increase investor protection. At the same time, because Amex's core constituency is composed of small to middle market companies, the proposed rules attempt to strike the appropriate balance between ensuring ethical conduct and protecting investors on the one hand, and avoiding measures that would stifle innovation or development on the other.

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