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Do you know that the Corporate Manslaughter Act takes effect in the UK on 6th April 2008?
Failure to comply with the Act could result in fines as high as 10% of a company’s annual turnover
The Corporate Manslaughter Act 2007 is a landmark in Law. Companies and organisations can now be found guilty of Corporate Manslaughter as a result of serious management failures resulting in a gross breach of relevant duty of care. |
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Why is the Corporate Manslaughter Act 2007 being introduced?
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| The current law allows an individual to be convicted of gross negligence manslaughter when considered to be the “directing mind” of the organisation. This has led to inequality as small companies have been prosecuted due to the “directors” having a hands-on approach, while larger companies have escaped prosecution as no blame can directly be found. |
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What difference is this going to make to me?
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The Act makes it easier to convict large companies |
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An organisation will be guilty of an offence in which its activities are managed or organised and; |
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- causes a persons death, and
- amounts to a gross breach of relevant duty of care
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The offence is directed at companies/organisations that are defined as being companies, partnerships, trade unions, employers’ associations, police forces and a number of government departments and public bodies |
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Individuals can still be prosecuted under the Act for a number of offences including gross negligence manslaughter |
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How can companies/organisations be penalised?
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An UNLIMITED FINE (It has been recommended that the fine is between 2.5 and 10% of a company’s annual turnover) |
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A requirement to adhere to specified steps in order to resolve the management failure |
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A court order for the company to publicise details of its conviction, severely damaging the reputation of that company in the eyes of their customers and giving their competitors a major business advantage |
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Where can I find out more information on the Corporate Manslaughter Act?
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Seton has developed a dedicated website to provide you with useful information on the upcoming legislation. The resource centre includes details on the Act, how it will affect you and a section on FAQ’s.
Visit: www.corporate-manslaughter-act.co.uk |
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