Risky Business: Board-Driven Investigations

Overview


Michael Peregrine wrote this bylined article in which he said that the GM board’s decision to engage an outside law firm to assess internal reporting mechanisms in the wake of a major product recall will have “lasting significance from a general corporate governance perspective.” Mr. Peregrine noted that “the actual decision to investigate the board’s own internal reporting processes may ultimately have greater governance significance than the actual results of the investigation” because it “sends a powerful message concerning the basic risk oversight obligations of corporate governance.”