UK Parliament / Open data

Corporate Manslaughter and Corporate Homicide Bill

I thank my hon. Friend for his assurances. I know that he tries to be as productive as possible and that he listened to our comments in Committee on that issue. Disqualification from company directorships is another important issue. In Committee, the hon. Member for Hornchurch (James Brokenshire) referred to the complexity of companies nowadays; many of them have holding or offshore companies, and the nature of corporations is changing rapidly and becoming ever more complex. As my hon. Friend the Member for Manchester, Central said, disqualification from being a company director could be as much of a penalty as a custodial sentence, because it would affect the person’s livelihood—their ability to make profits and to make contracts would be seriously affected. Their disqualification would also have an effect on the company itself. We need to make sure that the range of penalties available to the courts will provide sufficient deterrents in practice. We should realise how difficult it is for any prosecutor when considering whether to proceed with a charge, for the common-law offence of murder or for culpable homicide. Determining whether the evidence is sufficient is difficult, but there are cases where negligence falls just short of a common-law offence—which is easier in Scotland—yet is of such seriousness and consequence to victims and their families that it is appropriate for the court to have the option of imposing a custodial sentence. It is interesting to note the behaviour of FTSE 100 companies at present, given the threat of legal action in America that could result in custodial sentences. The latest case involves banking relationships in Iran. Although I do not agree with the American authorities about such actions, when people start arresting directors and talking about custodial sentences—as happened recently in respect of online gambling—it is amazing how quickly behaviour changes. When matters affect the top of the board of directors, each director manages to be extremely well informed. We need to be equally decisive in determining penalties for health and safety offences that involve people’s lives and welfare.

About this proceeding contribution

Reference

454 c60-1 

Session

2006-07

Chamber / Committee

House of Commons chamber
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