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Sarbanes-Oxley News & Developments
Attorney-Client Privilege: Under AttackHow much can you still tell your lawyer?
> > This fall, the SEC will begin weighing a proposal that could force lawyers who suspect wrongdoing, and can not make the company stop it, to resign publicly from a company service - a process known as noisy withdrawal. Even the American Bar Assn. is ceding ground. On August 11, in a divided vote, the ABA altered its ethics rules to allow lawyers to turn in their law-breaking clients.
Can you trust your lawyer with your secrets anymore? For the majority of executives, the answer is yes. Most of the day-to-day questions that executives ask about sexual harassment, workplace safety, intellectual property, and pollution regulations will remain as confidential as ever. But if you are implicated in wrongdoing - especially if a hot topic like tax evasion or securities fraud - then watch out. Your words may come back to haunt you in court.
The SEC is weighing a proposal that would force lawyers to resign publicly if clients do not correct a suspected wrongdoing.
Prosecutors are frequently demanding waivers of attorney-client privilege from companies under investigation.
Judges are forcing companies accused of serious fraud to unseal privileged documents.
Source: BusinessWeek article / Sept. 1, 2003 / Legal Affairs page 52
Published:2003-08-25
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