True or False: Communications between company counsel and employees are privileged, owned by the company.

The assertion that communications between company counsel and employees are privileged and owned by the company is grounded in the legal doctrine known as attorney-client privilege. When employees communicate with the company's legal counsel, these discussions are typically intended to seek legal advice for the company. Under this privilege, the communication is protected from disclosure to third parties, promoting openness between employees and legal advisors.

This protective mechanism encourages honest disclosure that can lead to effective legal counsel, enhancing overall compliance and risk management within the organization. The privilege resides with the company, not the individual employees, meaning the organization controls access to these communications.

Thus, the answer correctly reflects that the nature of the relationship between company counsel and employees regarding legal advice does indeed establish a privilege that is owned by the company. This is a fundamental principle in corporate law that serves to protect the company’s interests while ensuring adherence to legal and compliance obligations.