Section 406:
Code of Ethics for Senior Financial Officers
Section 406 of SOX requires public companies to disclose to the SEC whether they have adopted a code of ethics “code of conduct” that applies to the organization’s CEO, CFO, or persons performing similar functions. “Senior Financial Officers”, which consist of the Chairman of the Management Board, the Head of Group Accounting and the members of Group Finance Committee.
If the company has not adopted such a code, it must explain why.
A public company may disclose its code of ethics in several ways:
If a company elects to comply with the disclosure requirement by posting the code of ethics on its website, the company must disclose its Internet address and intention to provide disclosure in this manner in its annual report on Form 10-K.
What does the SEC mean by a "code of ethics?“
Written standards that are reasonably designed to deter wrongdoing
The purpose of the Code: