Businesses Take Note! First Conviction Under Corporate Manslaughter Legislation – £385,000 Fine Imposed
The Corporate Manslaughter and Corporate Homicide Act 2007 applies throughout the UK to all types of businesses. To act as a deterrent, and to encourage businesses to stop acting negligently and start acting responsibly in matters of safety, massive fines can be imposed and directors and senior managers can be imprisoned if someone dies and this is due to a breach of the Act. The business in question here was fined was £385,000. For public policy reasons, insurance does not cover criminal fines. So, organisations have to pay these themselves. Large fines could put many organisations out of business, unless they are allowed sufficient time to pay. Defending a corporate manslaughter prosecution will also cost a huge amount of money, which an organisation will have to pay itself unless it has the right legal expenses coverage. Please contact our corporate manslaughter law specialist Joanne Moody if you have any questions about the Act, the judgment and their impact for you.