Corporate criminal liability

Corporate criminal liability

A corporate body, including a company, is a separate legal identity (sometimes called a non-natural person). As such, it can be tried, convicted and sentenced for committing a crime. Where a statute makes it an offence for a person to do something, corporate criminal liability can arise unless the contrary intention is set out in the statute. They may also be accessories to crimes which can only be committed by natural persons. A company cannot serve a prison sentence, however, so the penalties that can be imposed on a company for criminal offences primarily involve a fine.

Corporate liability is an important element in encouraging ethical and transparent business practices. Where individuals are prosecuted, this does not preclude the corporate body also being prosecuted for the same wrongdoing subject to the prosecution being able to establish liability. Likewise, where the corporate body is to be prosecuted, individuals may also be charged with the same or other offences.

Corporate offences can be expressly created by statute, and which can only be committed by businesses. Examples include the ‘failure to prevent’ style offences:

1. •

   corporate manslaughter