Recently the U.S. Supreme Court agreed to hear a case to consider the constitutionality of the selection process for the Public Company Accounting Oversight Board (PCAOB), a key component of the 2002 SOX act. The heart of the case is to determine whether Congress overstepped its authority and violated the separation of powers when they assigned the SEC the responsibility to appoint PCAOB board members. Critics argue that only the President can appoint PCAOB board members.

Compounding the drama around the case is the recent resignation of the PCAOB Chairman, Mark Olson. According to reports, Olson is stepping down for personal reasons, but the timing is interesting. He was appointed to the position in July 2006.

The case’s outcome is uncertain, but even more nebulous is the effect the ruling may have on the overall SOX law itself. Many public companies see SOX as another burden to public file with little or no benefit to shareholders.

A decision is not expected until July 2010 with oral arguments to be held this fall.