Envex Company Limited - The new Corporate Manslaughter Bill has finally entered the stat

After almost 10 years in the waiting, the Corporate Manslaughter Bill has finally entered the statute book. The Act is expected to come into force by April 2008.

The key feature of the Bill has been to introduce a new statutory offence of corporate manslaughter (to be known as corporate homicide in Scotland), where the death of an individual is caused by an organisation.

In the past it has been possible to bring a manslaughter/ homicide prosecution against a company under common law. However, for a prosecution to be successful, the negligent act and/or breach of duty had to be linked directly to an individual, director or senior manager - the so called “controlling mind” of the company. As a result many attempted prosecutions failed.

Under the new law, the test will be met if it can be shown that the way in which the company’s “activities are managed or organised by its senior management” formed a substantial element of the breach. Time will tell to see how the the Courts will apply that in practice. In addition, there must be a “gross breach of a relevant duty”. The duties are owed, not only to employees, but to any person affected by a company’s activities. It is expected that the new approach will make it significantly easier for a prosecution to succeed.

Fines levied for the new offence will be without limit and can be expected to be on a similar level to those that have been handed out under existing Health and Safety law. The need to avoid damaging the organisation's reputation, as would happen if it were associated with a conviction for corporate manslaughter, may however be the greater deterrent.

Campaigners who wanted individual liability for directors and managers included in the new legislation will be disappointed, as it is only the corporate entity than can be liable. The jury, in arriving at its decision, will be able to consider the attitude and the policies of the organisation with regard to Health and Safety along with the extent to which Health and Safety guidance and codes of practice have been followed.

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