The Full Federal Court of Australia1 has clarified
resoundingly the law of privilege against self-incrimination and/or
exposure to penalties (the Privilege) as it
applies to partnerships.
The partnership of an accounting firm sought to resist the
production of its audit files, review files and working papers in a
shareholder class action regarding the collapse of a construction
company. The accounting firm made a blanket claim of the Privilege
on behalf of all of its Australian partners, including partners who
had no involvement in the audits of the construction company (the
Audits).
Background
The representative applicant in the class action purchased
shares in the construction company in 2011 and 2012, just before
the company went into liquidation on 28 May 2012 as a result of
alleged accounting irregularities. The applicant claims that it
suffered losses as a result of relying on statements made by the
accounting firm in its preparation of the Audits and
