The Sarbanes Oxley Act is very clear on the applicability to U.S. Divisions of Foreign Companies. The act states that in case the U.S. division of foreign company files annual reports with the Securities and Exchange Commission SEC, either under

- Section 13 (a)
- Section 15 (d)

of the Exchange Act, they must comply with the provisions of Section 404 of the Sarbanes Oxley Act. In case the foreign company does not file report under any of the above sections, Section 404 is not applicable to it.