In the current difficult operating environment of government linked companies and the reported incidents of hidden corporate scandals in Malaysia, new corporate leaders and incoming board of directors are faced with the risks of personal liability for breach of directors duties and breach of employment contracts for failing to act in the best interests of their companies.
Ticking time bombs in the form of undisclosed illegal conduct and ongoing offenses are of primary concern.
Some of the ways in which risks can be managed, minimized and or hopefully avoided are as follows:
1. Encourage employees to speak up about any wrongdoings they are aware of.
2. Implement a Whistleblower Program and Hotline.
3. Undertake an Internal Compliance Review.
4. Undertake Corporate Internal Investigations based on reported or discovered wrongdoing or misdeeds.
Even with a new CEO and Board of Directors, much of the old management and employees will remain in…
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