Definition Safe Harbor Statement. Description.
A Safe Harbor Statement is a legal provision found
in business documents such as annual reports and press releases that excuses
or diminishes liability if the attempt to comply in good faith can be demonstrated.
At the end of many annual reports, you can find this legal
stipulation that establishes a reduction or elimination of liability on the
basis that the report was made in good faith. Especially for forward looking
statements it is very important that investors are properly warned for key
risk factors that can affect the accuracy of the statement.
The Sarbanes-Oxley Act of 2002 requires corporations to provide
more detailed financial information to investors. Also, the
Chief Executive Officer
and the Chief Financial
Officer must attest to the accuracy of the financial report and to the
internal control systems.
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Safe Harbor Statements Special Interest Group
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Corporate Accountability
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