Overview
Managing corporate crime risk typically starts with a careful internal investigation before any formal action, so the company understands the actual scale of the problem and determines the appropriate response rather than escalating quickly without sufficient information.
We help board members understand when responsibility shifts from the company as a legal entity to the individuals specifically responsible for the decision at issue, a distinction that matters greatly when assessing any potential personal exposure.
Regulatory Basis
Corporate crimes fall under general penal provisions, with consideration for any specific provisions related to commercial fraud or abuse of authority depending on the nature of the violation.
How We Conduct Internal Investigations
We begin by precisely defining the scope of investigation, then gather relevant evidence and documents in a manner that preserves their confidentiality and withstands any later review.
Who Needs This Service
A company suspecting misconduct by an employee or official that needs a careful internal investigation before any formal action.
A board member needing to understand their potential personal exposure in an ongoing investigation matter affecting the company.
From our experience in this area, a rushed internal investigation that begins before its scope is clearly defined can harm the company's position later rather than protect it, since it may be conducted in a way that undermines the evidentiary value of certain evidence or violates the procedural rights of the suspected employee, which calls for legal oversight from the very first moment of the investigation, not after a procedural problem is discovered.
Additional Considerations
When the violation intersects with bribery or money laundering, this connects with our bribery and money laundering service.
For assessing a specific board member's liability, this connects with our corporate governance and compliance service.
Common Questions
Should an internal investigation be conducted before reporting to official authorities?
Often yes, since an internal investigation helps understand the actual scale of the problem and determine the appropriate response before any formal escalation.
When does a board member carry personal liability for a corporate crime?
This depends on the extent of their direct connection to the decision at issue, and we assess this exposure specifically for each case.