Getting it right when things go awry: Top tips for internal investigations

Published

Jun 27 2022

Written By

I'm a dispute resolution and regulatory investigations partner in our Sydney office. I work with clients to solve complex issues facing their businesses, whether that is a commercial dispute or engagement with regulatory agencies.

Companies and corporations will often commence internal investigations following major events, directives from corporate regulators, audit findings, or whistleblower complaints. Internal investigations can consume significant resources and often have the potential to cause hostility and reputational damage both internally and possibly externally.

However, an investigation that is not conducted properly can potentially expose the company and its personnel to even greater liability. Here are our top tips for investigators tasked with conducting an internal investigation:

BEFORE AN EVENT GIVING RISE TO AN INTERNAL INVESTIGATION EVEN OCCURS, ensure that your company’s internal policies are up to date. For example, the Corporations Act 2001 (Cth) (“Corporations Act”) requires most large Australian companies and entities operating in Australia to have whistleblower policies in place that comply with the Act’s requirements (particularly in light of renewed focus from ASIC, who in October 2021 reiterated the importance of maintaining such policies).
DETERMINING WHETHER TO COMMENCE AN INVESTIGATION can be difficult and involves a balancing act of competing interests. Factors which can be useful in making this decision include: (i) the severity of the complaint, audit finding or major event; (ii) whether an…