Edward Greene is a partner at Cleary Gottlieb Steen & Hamilton LLP focusing on corporate law matters. This post is based on a Cleary Gottlieb Steen & Hamilton Alert Memo.
On December 8, 2009, the French Cour de Cassation rendered an important judgment about the implementation of whistleblower procedures in France.
Since 2005, whistleblower procedures have been the subject of considerable controversy and difficulties in France. After prohibiting affiliates from McDonald’s Corporation and Exide Technologies from implementing whistleblower procedures required under the Sarbanes-Oxley Act, [1] the French Commission Nationale de l’Informatique et des Libertés (the “CNIL”) released guidelines (the “Guidelines”) summarizing its views on whistleblower procedures [2] and later implemented a safe harbor (the “Safe Harbor”) whereby whistleblower procedures are deemed authorized pursuant to a “unified authorization,” subject to certain conditions. [3]
Since the publication of the Safe Harbor, companies wishing to implement whistleblower procedures in France have three options: [3]