Money Matters - Spring 2008

New corporate manslaughter rules

UK companies and other organisations can be convicted of a new offence under the Corporate Manslaughter and Corporate Homicide Act 2007, which comes into force on 6 April 2008.

The new Act does not create new duties in law, but will make prosecutions easier. Companies and other organisations across the public and private sectors could be found guilty of the offence of corporate manslaughter (or corporate homicide in Scotland) if the way in which their activities are managed or organised causes a death and amounts to a gross breach of a duty of care to the deceased.

In the past, prosecutions have generally only succeeded against companies where the director and the company have essentially been the same. The new Act aims to focus on the way in which an organisation’s activities are managed and controlled; and prosecutions will not have to rely on an individual being found guilty of gross negligence.

The courts will now be able to consider the wider picture by looking collectively at the actions and failings of the organisation’s senior management.