Off the Hook: Corporate Impunity and Law Reform in the UK
This report looks at the background to and arguments for corporate liability reform and the options for reform.
It concludes that an extension of the offence of failure to prevent under Section 7 to economic crime, and possibly more broadly to serious crime, would be a significant step in the right direction of improving UK corporate liability laws. A failure to prevent model of corporate liability would also help ensure that the UK is able to comply with EU Directives which require liability for corporations where there has been “lack of supervision or control”.
It is questionable whether the UK is currently compliant with several EU Directives which require liability for corporations without such changes to its corporate liability regime. However, extending Section 7 should be done in tandem with a broader and comprehensive review of the UK’s corporate liability laws to ensure coherence and consistency in how corporations are held to account.