Dawn Raid Action Plan for Multinational Companies under Taiwanese Laws

• Insights 2020/07/30
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By  Hung Ou Yang and Tzu-Peng Chen

 

      Dawn raid is commonly used by law enforcement authorities for gathering evidence, companies based in Taiwan shall prepare for such government investigation process with a view that no further violation of laws will occur. The Taiwanese laws which may trigger dawn raid encompass Trade Secrets Act, Fair Trade Act, Criminal Code, and Securities and Exchange Act. As recently Quanta Storage lost an antitrust lawsuit filed by HP in the U.S., the relevant antitrust legal issues and government investigation by dawn raid may become a new topic so that multinational companies shall pay more attentions in advance. We hereby draft an action plan for multinational companies' references.   

 

Before the Dawn Raid

1. Appointing the internal contact person

       The internal contact person may be a member of senior manager. He/she will be in charge of the communication regarding the investigation and to coordinate the response team, if the  company is being inspected.

2. Providing the contact information of the company lawyers

 The company should provide contact information of company lawyers to the appropriate         employees, including the internal contact person and the receptionist.

3. Preparing the list of responsible employees

The company should provide the receptionist a list of personnel to be informed when there is a dawn raid, e.g., the most senior manager on-site and the internal contact person.

4. Preparing an internal alert email

Request your company lawyers to prepare an internal draft email with the most important instructions, including the contact information of company lawyers, to the on-site employees.

 

During the Dawn Raid

When the investigators arrive

1. Stay calm and be polite.
2. Request the investigators to show the search warrant and their official ID.

 (1) Please check the search warrant carefully and then take a quick note for the case number and the charge.

     (2) Get a copy of the search warrant if permitted by the investigators.

3. DO NOT give your consent to search IF THERE IS NO SEARCH WARRANT.
4. YOU MAY contact your supervisor/boss unless specifically prohibited by the investigators.
5. Call your external company lawyers. Lawyers will be allowed to appear with the investigator's permission and give you legal opinion as much as possible.
6. Inform on-site employees by the alert email. The email shall include the most important instructions for the employees to follow.

 

When the dawn raid is ongoing

1. YOU MAY provide your personal ID to clarify your identity.
2. YOU MAY follow the investigator's orders. However, you are not required to give them the password you know even if the investigator gives you such an order.
3. YOU MAY immediately raise your objections if the investigator searches your personal container and intrudes your privacy, not within the scope of search warrant.
4. YOU MAY immediately raise your objections if the investigator seizes your personal property, not within the scope of search warrant.
5. YOU MAY request the investigator to let you keep a copy of the company business/accounting documents for business operation.
6. DO NOT hide or destroy any materials during or after the search. You may be prosecuted because of such acts.
7. DO NOT leave the investigators unattended. However, do not obstruct them. You may observe the investigators throughout their seach and take notes for their actions and what documents they inspect. Also, please do your best to memorize what items have been seized.
8. DO NOT talk to the inspectors about the company's business.
9. If you are clearly named as a defendant by the investigator, DO NOT talk until your personal lawyer arrives. You have a right to remain silent.
10. DO NOT record or videotape the search and seizure or take any picture unless you obtain the investigator's permission.
11. If you are named as a witness, DO NOT lie during the interrogation. If you do not know the answer to a question, say you do not know.
12. After search and seizure, the investigator will ask you to sign a seizing list if the properties at your possession are seized. You may sign it only if the list is correct in every respect.
13. Please check this list very carefully for the item seized and its quantity. The investigator cannot take away anything not on the list.
14. If there is no item seized during the search, you may request the investigator to give you a certificate.

 

After the Dawn Raid

1. Debriefing with the response team and the company lawyers. The debriefing should be held to work on the follow-up strategy and further steps to be taken. The company should collect written notes of the inspection from on-site employees and provide them to the company lawyers.
2. Suspending any document destruction, including routine document destruction, before consulting with the company lawyers. The company lawyers will determine the appropriate timing for company to restart routine document destruction.     

 

AUTHOR: Hung Ou Yang

Managing Partner
Taipei
+886-2-2707-9976
[email protected]

 

AUTHOR: Tzu-Peng Chen

Associate

Taipei
+886-2-2707-9976
[email protected]

 

 

Copyright Brain Trust International Law Firm

Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.