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TBI Solicitors, one of Tees Valley's leading law firms, has advised North East businesses to review their safety procedures.
John Ellwood, Senior Criminal Defence Lawyer with TBI Solicitors, said: “A new law which came into force earlier this year could devastate a company should a major disaster occur.”
John R Ellwood of TBI Solicitors
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In April 2008, the Corporate Manslaughter and Corporate Homicide Act 2007 came into force, making it no longer necessary to identify an individual within a company who could be said to be guilty of manslaughter before the company faces criminal liability.
The new law attempts to make a company guilty where there have been shown to be serious failings of the senior management. The penalty for a convicted company could be devastating – up to 10 percent of turnover, or more in the most serious cases.
John added: “The Government responded to public concern that no company was ever prosecuted to conviction for any of the recent large scale disasters such as the Southall or Paddington train crashes, the capsizing of the Herald of Free Enterprise off Zeebrugge, Belgium and the sinking of The Marchioness pleasure boat on the Thames.
“I have some doubt as to whether the new act, which is very complex, actually achieves what it set out to do but I advise companies to take expert advice. While well-run companies with good safety procedures should have nothing to fear, but no one should be complacent.”
Previously the Criminal Justice System had shied away from criminalising conduct which had been proven to be the result of a series of management failures. It had therefore been impossible to prove that a company was guilty of any offence in large disaster cases. The only companies convicted were small outfits where in effect the director was the company.
Companies could be sued for negligence. However, as the business was insured, the public belief was that they were escaping liability, even when they had caused the deaths of people to whom they owed a duty.
For further specific information on this issue, please contact John Ellwood of TBI Solicitors on 01429 264 101.
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