Heightened focus on corporate governance and financial transparency, culminating in the passage of the Dodd-Frank Act, has brought renewed attention to the need for increased investigative activity at many public companies. When circumstances dictate that the company conduct the probe independently of management, the board of directors or a board committee typically takes responsibility for managing the investigation with the assistance of outside advisors. Since an investigation can have far-reaching implications, the company’s directors have an obligation to manage the project effectively, balancing often-competing considerations in the best interests of the company’s stakeholders. Rick Ostiller and Jonathan MacKenzie, leaders of Navigant’s Accounting Investigations practice, and John Tang and Tim Crudo, partners in the Securities Litigation and Investigations Group at Latham & Watkins, discuss best practices for conducting independent investigations.
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