The U.S. Supreme Court has upheld the constitutionality of the auditor oversight organization, the Public Company Accounting Oversight Board, while striking down one of its governance elements, leaving both the board, and the Sarbanes-Oxley Act that brought it into being largely untouched.

The Supreme Court issued its decision Monday in a lawsuit challenging the PCAOB and SOX, affirming part of a lower court decision, and reversing part of it. Effectively, the court found that the provision requiring that PCAOB members could only be removed by the U.S. Securities and Exchange Commission “for good cause” is unconstitutional. However, the court also found that this element can be severed from the rest of the SOX bill, allowing it to stand.

The SEC notes that the court stated that the Act “remains fully operative as a law” with the for-cause restrictions excised, leaving the members of the PCAOB subject to removal by the commission without restriction. The opinion does not call into question any action taken by the PCAOB since its inception, it adds.

“I am pleased that the court has determined that the board’s operations may continue and the Sarbanes-Oxley Act, with the board’s tenure restrictions excised, remains fully in effect. The PCAOB is a cornerstone of the Sarbanes-Oxley Act and serves a critical role in promoting investor protection and audit quality,” said SEC chairman, Mary Schapiro. “We look forward to continuing to work with the board in connection with its mission to oversee auditors in order to protect the interests of investors and further the public interest in the preparation of informative, accurate and independent audit reports.”

“We are pleased that the decision allows the PCAOB to continue without interruption to carry out its important mission of overseeing public company audits in order to protect investors and promote the public interest,” said PCAOB acting chairman, Daniel Goelzer.

IE