In 2002, this act was enacted as a result of the misconduct committed by executives which resulted in massive economic losses to their employees and investors

That would be Sarbanes-Oxley act.

After the fiasco and fall of the Enron Corporation and the accounting fraud that happened and signaled the start of the major economic crisis, the state enacted the Sarbanes-Oxley act. The act set new and expanded existing regulations regarding the executive boards of the firms and the accounting firms.