Noerr LLP: Noerr Compliance Day - experts criticise lack of investigation of compliance breaches
(firmenpresse) - (DGAP-Media / 19.04.2013 / 13:04)
Noerr Compliance Day - experts criticise lack of investigation of
compliance breaches
Munich, 19 April 2013
The lack of investigation of compliance breaches increasingly raises the
risks of liability and damage to reputation of company and management.
'While stable compliance systems have been established in many companies,
the investigation of compliance breaches is still frequently inadequate',
said Prof. Dr. Thomas Klindt before over 200 experts from Germany and
abroad at the Compliance Day of the commercial law firm Noerr. Klindt
warned of drastic consequences: 'Managers involved may be made personally
liable for the negative consequences of incomplete investigation'.
According to the observations of Noerr partner Dr. Christian Pelz, good
compliance systems have been established in many companies. 'Prevention and
monitoring are usually no longer the issue', said the criminal lawyer. On
the other hand, a real case can be problematic: 'If, after an uncovered
compliance breach, the switch from routine to crisis mode must be made, the
limitations of internal compliance are often exposed'.
In the event of crisis, companies are confronted directly with legal claims
and media attention. 'Then the claims between the organs of the company
must be investigated, compensation headings clarified and meaningful
solutions developed', said the head of Noerr Compliance Group, Dr. Torsten
Fett. Getting at the necessary facts often requires internal
investigations.
'Compliance systems can give an illusory sense of security', warned Fett.
Precisely in the subsequent investigations of, for example, cartel breaches
by employees, expense should not be spared: 'Inadequate internal
investigations are the fertile ground for the next crisis'. If compliance
breaches are not punished, drastic consequences for the company and
responsible employees can arise with the next breach, even including fines
and personal compensation claims.
The requirements on internal investigations are high. Even before the
actual work of investigation, a legal review must take place. 'The
framework for the subsequent investigations must be established', said
Oliver Jung, Rechtsanwalt and compliance expert at Noerr in Düsseldorf. In
the case of cross-border investigations, the scope for the investigators
can either increase or reduce: 'The investigators, while they may inspect
e-mails of employees in many states, must often inform certain authorities
thereof', reported Jung. If the authorities are not informed, the results
may not be used. Jung: 'In the worst case, defective investigation can then
provoke a new case of liability and headlines.'
In the event of crisis, management and supervisory board members are
particularly called upon. Torsten Fett, together with Noerr partner Dr.
Dieter Schenk, reported on this at the Compliance Day. 'For the management
board, this means firstly, that a valid compliance structure is established
in the company and that adequate resources for internal investigations
exist for the event of crisis, or external experts can be called upon
rapidly', emphasised Fett. If the investigations reveal misconduct of
individual employees, in principle, the management board is obliged to take
action against them. That could, apart from dismissal of employees, result
in compensation claims. 'If valuable employees for the company are
affected, the management board is in a sensitive situation', said Fett. 'It
is caught between best possible investigation and its obligations to act
resulting therefrom and the understandable desire to give valuable
employees a perspective within the company'. An internal amnesty programme
could be the practical way in such cases as reported by Noerr employment
lawyer Dr. Hans-Christoph Schimmelpfennig from practice.
The experts at the Compliance Day were in agreement that the positive
effects of good internal investigations prevail: 'Not only are liability
risks minimised thereby', emphasised media lawyer and Noerr partner, Dr.
Martin Diesbach. 'Today, it is much more important that reputation damage
by reports in the press and on Web 2.0 is thereby avoided'.
Noerr is one of the top European law firms with 480 professionals in
Germany, Europe and the USA. We deliver real value to our clients by
devising and handling the right solutions to complex and sophisticated
legal matters. The Noerr difference is our unique combination of legal
excellence, creative thinking, international experience and in-depth
industry knowledge. Together with our tax advisors, auditors and management
consultants, we also develop sustainable solutions for finance and
management.
The Noerr Compliance Group is lead by Dr. Torsten Fett.
According to the Wirtschaftswoche (Issue 16 of 16 April 2012) Noerr is
among the top law firms for compliance.
Matthias Schulte
PR-Manager
T +49 69 971477418
matthias.schulte(at)noerr.com
End of Media Release
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Issuer: Noerr LLP
Key word(s): Law
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