Global Guide: Corporate Criminal Liability

The risk for an organisation of being held liable for criminal activity is high on the agenda for directors, company officers and shareholders alike. The impact of a criminal conviction can be severe, potentially resulting in financial penalties, operational sanctions and considerable damage to a company’s reputation. 

For international businesses, an understanding of current global trends and how corporate criminal liability is regarded in different jurisdictions is key to managing corporate risk. However, the question of whether and how a corporate entity can be held responsible for criminal wrongdoing independently from the individuals whose actions actually constitute the crime is something of a technical and legal conundrum which is answered differently across jurisdictions. 

In our comparative review of corporate criminal liability, we examine the position of companies across 22 jurisdictions and assess the risks they face in each. For each jurisdiction the review provides at-a-glance answers to 12 specific questions:

• Can companies be criminally liable for wrongdoing?
• For what kind of wrongdoing can a company be held criminally liable?
• How far does criminal liability extend?
• Does criminal liability extend to foreign companies?
• Is the company legally obliged to disclose criminal offences to the competent prosecution authorities?
• Are the prosecution authorities legally obliged to conduct a criminal investigation into corporate wrongdoing?
• What is the position of the defendant company in criminal proceedings?
• Is the company legally obliged to cooperate with the prosecution authorities in the proceedings?
• What kind of sanctions can be imposed on companies?
• What is the relevance of an effective compliance system?
• How are criminal proceedings against companies conducted in practice?
• What is the likely future scope and development of corporate criminal liability?