A federal court in Texas has issued another preliminary injunction and stay halting enforcement of the Corporate Transparency Act and its beneficial ownership information reporting requirement, which were already on hold following a recent reversal by a federal appeals court.

The U.S. District Court for the Eastern District of Texas, Tyler Division, issued the preliminary injunction and nationwide stay yesterday. The same district court’s Sherman Division, had issued an earlier injunction last month in the case of Texas Top Cop Shop v. Garland. A panel of judges on a federal appeals court temporarily lifted the injunction late last month, but another panel of judges on the same court reinstated it only days later. The Justice Department filed an emergency request last week with the U.S. Supreme Court to lift the injunction.

The decision on Tuesday involved a case with a pair of plaintiffs, Samantha Smith and Robert Means, suing the U.S. Treasury Department. They had formed LLCs under Texas law to hold real property in the state. In an opinion, Judge Jeremy Kernodle held the law likely exceeds federal authority, finding that the government’s theory of government power was “unlimited” and its actions were probably unconstitutional.

“The Corporate Transparency Act is unprecedented in its breadth and expands federal power beyond constitutional limits,” he wrote. “It mandates the disclosure of personal information from millions of private entities while intruding on an area of traditional state concern.”

He noted that the LLCs do not buy, sell or trade goods or services in interstate commerce or own any interstate or foreign assets. 

The CTA passed as part of the National Defense Authorization Act in 2021 and requires businesses to disclose their true owners as a way to deter shell companies from carrying out illicit activities such as money laundering, terrorist financing, human trafficking and tax fraud. Businesses are required to file beneficiai ownership information reports with the Treasury Department’s Financial Crimes Enforcement Network. FinCEN has since announced that companies are not currently required to file BOI reports with FinCEN and are not subject to liability if they fail to do so while the court order remains in force. However, they can continue to voluntarily submit BOI reports. New businesses began filing the reports when the CTA took effect on Jan. 1, 2024, but existing businesses weren’t supposed to be subject to the requirement until Jan. 1, 2025. However, that requirement is currently on hold. An earlier decision in a separate lawsuit had exempted members of the National Small Business Association from the requirement.

The Texas Public Policy Foundation is representing the two property owners challenging the CTA, arguing that the law violates federal Commerce Clause powers under the Constitution and undermines the principles of limited government and individual liberty. 

“The court’s decision affirms the principle that federal government power is not unlimited,” said TPPF general counsel Robert Henneke in a statement Wednesday. “This ruling is a powerful reminder that our Constitution limits federal power to protect individual rights and economic freedom.”

“The government’s theory of power in this case was effectively unlimited,” said Chance Weldon, director of the Center for the American Future at TPPF, in a statement. “The district court’s opinion is not only a win for our clients, but ordinary Americans everywhere.”

The Financial Accounting Foundation today formally opened the search for several leadership roles.

The FAF Board of Trustees’ Appointments Committee is seeking nominations for these positions, which include chair and members of the Board of Trustees, the FAF’s executive director, Financial Accounting Standards Board member, and chair of the Financial Accounting Standards Advisory Council.

FAF executive director

Current FAF executive director John Auchincloss announced in December 2024 that he will retire from his post on Sept. 30, 2025. 

The executive director leads a team of 45 who provide support services to the FASB and the Governmental Accounting Standards Board, including communications and public affairs, legal, IT, human resources, publishing, financial management and administration. The role supports the FAF Trustees, who ultimately oversee the FASB and GASB Boards and their advisory councils. The executive director, in collaboration with the FAF chair, also sets the organization’s U.S. and international outreach strategies.

A full description of the FAF executive director role can be found here. Nominations should be submitted to executive search firm Spencer Stuart at a confidential, dedicated email address [email protected] by Feb. 24, 2025.

FAF Board of Trustees chair

The chair of the FAF Trustees is involved in all major Trustee decisions related to strategy, appointments, oversight and governance, and in representing the organization with high-level stakeholders and regulators.

The new chair will be appointed for a three-year term beginning Jan. 1, 2026, through Dec. 31, 2028, and can stand for reappointment to a second three-year term beginning in 2029.

A full description of the FAF Board chair role can be found here. Nominations should be submitted to executive search firm Spencer Stuart at [email protected] by Feb. 24, 2025.

FAF Board of Trustees at-large member

The FAF Board of Trustees oversees and supports the FASB and the GASB, and exercises general oversight of the organization except regarding technical decisions related to standard setting.

The FAF is recruiting several “at-large” trustees — individuals with business, investment, capital markets, accounting, and business academia, financial, government, regulatory, investor advocate, or other experience.

A full description of the FAF trustee role can be found here. Nominations should be submitted to executive search firm Spencer Stuart at [email protected] by Feb. 24, 2025.

FASB member

FASB members develop financial reporting standards that result in useful information for investors and other financial-statement users. The FASB member roles are full time and based in Norwalk, Connecticut. 

“These are senior and prestigious appointments, demanding not only a high degree of technical accounting expertise but also a high level of understanding of the global financial reporting environment,” the FAF announcement reads.

The official start date for the position would be July 1, 2026, but the newly appointment member would be expected to start some time earlier than year to ensure a successful transition. The five-year term extends through June 30, 2031, at which time the member would be eligible to be considered for reappointment. 

A full description of the FASB member role can be found here. Nominations should be submitted to executive search firm Spencer Stuart at [email protected] by Feb. 24, 2025.

FASAC chair

The chair is the principal officer of the FASAC and advises the FASB on projects on the FASB’s agenda, possible new agenda items and priorities, procedural matters that may require the attention of the FASB, and other matters. The chair is responsible for guiding discussion at FASAC meetings and for implementing and directing the broad operating processes of the FASAC. 

The chair may be appointed for up to a four-year term, or a shorter period of time as agreed upon, and may be eligible for reappointment. 

A full description of the FASAC chair role can be found here. Nominations should be submitted to FAF human resources at a confidential and dedicated email address [email protected] by Feb. 24, 2025.

Courtesy of the FAF, FASB and GASB

Top 10 Firm Grant Thornton announced that its CEO, Seth Siegel, is stepping down from his position after 30 years with the firm, though will still remain involved as a senior advisor.

“I have called Grant Thornton home for almost three decades and am proud to have been part of this amazing team and organization, which has solidified its standing as the destination of choice for clients and talent alike,” said Siegel in the firm’s official statement. He felt that, with Grant Thornton positioned for what he said was strong continued growth, it was the right time to step down. In a LinkedIn post, Siegel said the move will allow him to pursue other ambitions, focus on his health and spend more time with his family.

The new CEO will be Jim Peko, current chief operating officer of Grant Thornton Advisors LLC.

“I thank Seth for all he has done to help transform Grant Thornton so adeptly for the future. He has been a colleague, mentor and friend to so many of us, and a tireless advocate for the firm’s best interests. As CEO, my priorities will focus on accelerating our current business strategy and solidifying our standing in the marketplace as a unique global platform, driven by quality, culture and differentiated capabilities. We will continue to be the employer of choice for the industry and always capitalize on compelling opportunities before us as we drive meaningful growth,” said Peko.

Siegel expressed his confidence in Peko, saying he has worked closely with him for many years.

“Jim and I have worked closely together for many years, and he is the right leader for this new chapter — one who knows Grant Thornton well and has been integral to our many recent accomplishments and our quality-focused delivery,” he said.

Siegel became a partner in 2006, became managing partner of South Florida in 2020, and became CEO in 2022.

The announcement comes shortly after the completion of the merger between Grant Thornton Advisors LLC in the U.S. and Grant Thornton Ireland. At the time it was said that Grant Thornton Advisors CEO Seth Siegel would continue in his leadership role at the combined firm, while former Grant Thornton Ireland CEO Steve Tennant would become a member of Grant Thornton Advisors’ executive committee.

Grant Thornton laid off about 150 employees in the U.S. last November across the advisory, tax and audit businesses after the deal was announced. Its U.K. firm also received private equity investment last November from Cinven, which acquired a majority share of Grant Thornton U.K.