Business Leaders Back Corporate Manslaughter Report

20 December 2005

A new report into the Government's proposed Corporate Manslaughter legislation was welcomed today by the Institute of Directors (IoD). The IoD said it agreed with many of the recommendations in the report from the joint Home Affairs and Work and Pensions Select Committee.

The IoD said it was pleased to have had the opportunity to give oral evidence around many of the key issues and commended the effort of the joint Parliamentary committee that undertook the inquiry into the draft Bill.

In particular the IoD welcomed:

The call for unincorporated bodies to brought within the scope of the proposed new law.

The approach to removal of Crown immunity for public bodies.

The call for further work by the Home Office to ensure that the law will be workable and apply consistently to organisations of all sizes.

The recommendation that there should be more innovative sanctions, which the IoD has long favoured.

However, the IoD has serious concern that the issue of individual director liability has been raised again. This could lead to further protracted debate rather than moving the present unsatisfactory law forward.

Patricia Peter, Head of Corporate Governance at the IoD, said:

"It has taken many years to reach this point and it would be regrettable, to say the least, if the reopening of this debate were to lead to continued failed prosecutions and failures in the criminal justice system.

"There is a danger under the Committee's secondary liability proposal that directors will face individual liability which would fly in the face of encouraging appropriate corporate culture."