Corporate Manslaughter and Homicide

The failure to obtain convictions for corporate manslaughter following the Herald of Free Enterprise ferry disaster of 1987, the Southall and Paddington rail disasters of the 1990s and the Hatfield and Potters Bar rail disasters at the turn of the millennium were highly criticised by both the public and the media; disgust that has cumulated into the Corporate Manslaughter and Corporate Homicide Act 2007.

The purpose of this Act is to eradicate the difficulties of proving that the gross negligence of a ‘directing mind’ of an organisation, that is a senior individual of an organisation who embodies the company in his actions and decisions, resulted in a person’s death. It is envisaged that by concentrating on the decisions, management systems and practices of an organisation as a whole, the Crown Prosecution Service will be able to prosecute those businesses which are guilty of the worst corporate failures. Now whilst this Act can be morally commended, it does however pose problems for businesses.

For example, the application of this Act is extremely wide. It applies to all organisations operating within the UK, whether that is a company, partnership or certain public bodies such as the NHS or police and covers a range of activities such as health and safety at the workplace, the supply of goods and services and construction or maintenance operations. Thus, with the consequences of a conviction being an unlimited fine and the requirement to publicise any conviction, businesses should be aware of the practical steps that can be taken to avoid the damaging consequences that such a conviction can bring.

Please contact David Dees or Nick Crook if you would like to know more. Further information regarding the scope of the Act can be found on the Institute of Chartered Secretaries and Administrators website (www.icsa.org.uk).

Filed: 23/10/2008 11:56:42