Effect of Sarbox in Silicon Valley debated

We tend to stay focused on some pretty narrow, almost niche issues. But everyone now and then it's nice to take a step back and gaze through a larger window, such as the effect of Sarbanes-Oxley on Silicon Valley. We've heard often that the law is strangling small start-ups, but a new twist was added when Jim Clark resigned from Shutterfly. He cited constraints that stem from his dual role as large shareholder and chairman. Many started to question whether we'll see more of this, given that lots of shareholders sit on start-up boards. Recall that Tim Draper, of Draper Fisher Jurvetson, also dropped off several boards, citing Sarbox. My view is that if we were going to see this happen in droves it would have happened already. That said, Sarbanes-Oxley is always a good reason to give when making a major move; it sends a certain message and grabs attention.

For more:
- read this CNET article