Three harassment claims against Bailey prompted the organization, which oversees the Academy Awards, to launch an investigation into the claims, Variety reports.
Last October, in the wake of the media reports about serial sexual misconduct by Harvey Weinstein that sparked the #MeToo and Time's Up movements, the Academy expelled Weinstein and Bailey emailed its members to say that the Academy would henceforth investigate reports of similar misbehavior. The Academy immediately opened a probe.
The institution has issued hours later a communiqué, in which it assures: "The Academy studies each complaint in confidentiality to protect all parties".
Academy rules stipulate that the Membership and Administration Committee review all misconduct allegations.
The organisation also insisted there would be no further statements "until the full review is completed".
ET has reached out to both The Academy and Bailey for comment.
The veteran United States movie director and cinematographer was elected to the four-year term as president of the Academy in August and has overseen the backlash against sexual misconduct in Hollywood following the Harvey Weinstein scandal.
He succeeded Cheryl Boone Isaacs in the position, the Academy's first black president.
The standards outlined how the academy will approach sexual misconduct allegations going forward.
Bailey's credits include "Ordinary People", "American Gigolo", and "Groundhog Day".
The bombshell revelation comes as Hollywood's most powerful men face serious questions after studio bigwig Harvey Weinstein's decades of sexual assault shocked the movie industry past year.
The Golden Globe-organisers, the Hollywood Foreign Press Association, in February reviewed groping allegations by Mummy actor Brendan Fraser against its former president Philip Berk.
Bailey has worked as a cinematographer for more than 40 years.
When asked about that by Variety previous year, Bailey said, "What you just said is bulls-". If investigation against Bailey forces him to leave office, Vice President Lois Burwell, make-up film as fifth Element, save private Ryan or Braveheart, would temporarily take over presidency until upcoming elections in this Organization in July.