New Laws for Corporate Manslaughter Up Legal Ante for Businesses

Company directors across the UK are preparingfailure leading to the death.
themselves for one of the biggest legislativeAnother tool at the courts' disposal is the use of
shake ups to direct corporate accountability in aa publicity order. This would require companies to
very long time. The Manslaughter and Corporatetake out ads specifying the fact they were found
Homicide Act comes into force on 6th April 2008guilty and the amount of the fine. This may be
and business lawyers are urging businesses toparticularly useful if the company in question is an
check their level of risk.established brand or well known name. The new
The new law follows events such as thelaws will apply to companies, partnerships and for
Paddington and Southall rail crashes and the ICLthe first time, Crown institutions which were
Stockline explosion which have increased publicpreviously immune. However, the new law will not
awareness in regard to the lack of accountabilitybe retrospective.
in large private companies.Although widely accepted as a step in the right
Roughly 40,000 people have been killed indirection, it has been suggested by some groups
commercially related circumstances between 1966that the reforms do not go far enough. In a 2003
and 2006 with 34 companies prosecuted forMORI poll for the Transport and General Worker's
homicide and seven resulting in convictions. In theUnion, 65% of people surveyed felt that
past year there have been over 600 fatal workworkplace safety will only improve if directors can
related injuries, with other injuries ranging frombe personally prosecuted. The joint committee
amputation of limbs to loss of sight andreport from the Home Affairs and Work and
electrocution.Pensions Committee suggested that individuals as
The old common law system revolved around thewell as companies should be prosecuted, however
"identification principle" which meant a seniorthis was rejected by the government. The
individual had to be found to have acted in aInstitute of Directors said that "the Home Office
negligent manner. Often, the sheer number ofnow had he opportunity to put forward legislation
workers, managers, senior staff and delegatedthat will fill a gap in criminal law by creating a
management systems meant that it was nearlyworkable offence of Corporate Manslaughter".
impossible to trace accountability to one specificIt seems victims and families seeking legal advice
person; the new system does away with thisare not as concerned with placing a monetary
stumbling block.value on the death/injury/medical condition but
The new law creates a specific offence ofare more concerned with trying to ascertain
"corporate manslaughter". If the company causessome accountability and for the company to take
a death through bad management which amountsresponsibility and rectify the failures so that the
to a gross breach of the company's 'duty of care'situation does not repeat itself.
to the deceased, this could lead to a conviction.The new laws go some way to making larger
The management of the company must be acompanies more accountable but it seems to be
substantial contributing factor to the death.the general consensus that they do not go far
The new law does not lower the standard ofenough as there is still no direct personal
proof required which is still beyond a reasonableaccountability for individual mangers/directors
doubt, but if found guilty, companies can be finedbehaving in a grossly negligent manner but hiding
an unlimited amount and remedial orders can bebehind the public face of the company.
made to force the company to remedy the