Corporate Manslaughter Act ‘No Problem For Caring Companies’

by Stewart Douglas

Story link: Corporate Manslaughter Act ‘No Problem For Caring Companies’

Former Home Secretary David Blunkett has today offered assurances to company officials in light of the new Corporate Manslaughter Act, suggesting that those that look out for the health and safety of the public and their employees would have nothing to worry about.

The Corporate Manslaughter Act, coming in to force in April 2008, is designed in theory to provide a more straightforward process for criminalising corporate acts leading to death which have until now proven to be problematic in terms of actual converting to conviction as a result of detailed company law doctrine.

Company officials and insurance groups alike have feared that the new Act will do little to provide any real recourse for those aggrieved by the actions of companies, other than hit the pockets of insurance companies and lead to increase policy costs.

The Corporate Manslaughter Act has been criticised in legal circles for a number of reasons. Applicable throughout the UK the new Act makes no provision for different legal jurisdictions throughout the UK, largely ignoring Scottish law in the area which differs substantially in terms of English criminal liability.

Additionally the lack of coverage for wrongdoings that result in damage less than death has also been cited as a potential problem, which could continue to let offending companies ‘off the hook’.

At present a conviction requires the establishment of a single guiding mind within the company that was sufficiently guilty to be convicted of an offence - a theory which in practice proves hard to satisfy.

Mr Blunkett’s words today were designed to offer some reassurance in light of the widely criticised Act, which it is thought could give rise to an increasing number of insurance claims on directors’ and officers’ liability policies.