Essay by Jayne W. Barnard
Enron has brought about demands from many quarters to grant the Securities and Exchange Commission (SEC) new powers. Among the powers the SEC now seeks is the power to bar or suspend securities law violators from serving as an officer or director of any public company. Currently, the law assigns this power only to federal district courts. In this Essay, Professor Barnard traces the history of the current law, examining why Congress has expressly withheld suspension and bar powers from the SEC. She then argues that the courts have exercised their suspension and bar powers wisely, and that recent developments do not compel any legislative change. Finally, recognizing that Congress may well be persuaded that new legislation is necessary, she provides model statutory language that could be used for such a change.
About the Author
Jayne W. Barnard. James Goold Cutler Professor of Law, The College of William & Mary School of Law, Williamsburg, Virginia.
Citation
76 Tul. L. Rev. 1253 (2002)