The Sarbanes and Oxley Act of 2002 required firms to have a majority of independent directors on their board. Critically discuss the rationale of such a requirement.

Due to corporate governance issue in early 2000 arises in Enron and other companies Congress passed Sarbanes-Oxley Act 2002 for regulating functioning of corporations.For stoping any fraud activities and maintaining corporate governance this act is passed .This act gives focus on maintainingTransperancy,Accountability,fairbess etc by the corporations during their business.For the same its compulsory for corporations that to appoint majority of independent director that means director should only keep eye on the function of corporations without internal management pressure.Actually such director work as whistleblowers of the corporations and keep eye on not any stackholders interest is affected by corporation decision.

Independent director can easily meet the requirement of transparency,accountability and fairness due to this reason act give focus on that the majority of director of board must be independent director.