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Rules-based control is when behavior is underpinned and prescribed by the statute of the country’s legislature. Compliance is therefore enforceable in law such that companies can face legal action if they fail to comply.
Ex. (US-listed companies are required to comply in detail with Sarbox provisions).
Sarbox compliance can also prove very expensive.
The same detailed provisions are required of SME's as of large companies, and these provisions apply to each company listed in New York.
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