Duties of Directors to Expose and React to Management Wrongdoing - US
Introduction
It is late on a Friday afternoon. The Chief Executive Officer, or the General Counsel, of XYZ Corp. receives a telephone call advising that the local FBI, United States Attorney, or Regional Office of the SEC, is investigating serious charges of wrongdoing alleged to have been committed by Ms. A, the Company's Chief Operating Officer and governmental liaison, in connection with a number of government procurements. A search warrant, or an all-inclusive subpoena, has …
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