13th November 2006 - Corporate Manslaughter Paper
On the 13th November 2006 the Branch held it's seventh technical evening of the 2006 programme at the Compass Inn, Tormarton.
Daniel McShee of Kennedys delivered a presentation on a new corporate manslaughter offence which is currently moving through Parliament. It has taken 10 years for the Bill finally to arrive from,
- 1996 - Law commission
- 1997 - Southall
- 2000 - Government proposal
- 2002 - Regulatory impact assessment
- 2005 - Draft Bill
- 2006 - The Bill
In current law cases of Gross negligence Manslaughter against an individual there must be
- A duty of care
- Breach of duty
- Individual gross negligence
- Cause or substantial cause
- Penalty is a custodial sentence
Under current law for Corporate Manslaughter,
- Corporations can be liable
- An individual who is so senior in a company that he is said to represent the 'Directing Mind' of the company.
- Identification principle of linking people at the top with the event on the floor
- Penalty is an unlimited fine
The new Act will apply throughout the UK and abolish the current law of corporate manslaughter which has proven to be very difficult to prove, particularly against big companies.
The new offence is aimed at organisations rather than individuals and will introduce a new statutory offence based on management failure of senior managers (possibly in the plural) whereby it will be possible to aggregate the failures of senior managers to see whether there has been a "gross breach of duty of care".
Senior managers are considered to be those
- Making decisions, managing substantial parts or activities of the business
- It will capture individuals lower in the management tree than the directing mind
Other issues considered under the new bill are
- The DPP( Director of Public Prosecutions) consent is required
- Defence of CM charges rather than HSWA offences may result in more contested cases
- The Police will investigate and the HSE advising
- Insurance costs may rise significantly to include cover of legal fees in CM cases
- The use of specialist lawyers will be required to handle such cases
- Increased fines estimated range of 15-20 million pounds
- These fines will not be indemnified by the insurance cover, but must come straight from the bottom line profit of the company
To summarise, many ingredients are the same, but there are 3 key differences from all the above
- no need to convict an individual senior manager
- aggregation of senior managers
- senior managers, lower in the heirachy
The vote of thanks was then duly given by Stephen Savory.
Andy Shakeshaft (West of England Branch Committee member)
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