I was going to say that the Minister made a passing reference to a very important point raised by the noble Lord, Lord Wedderburn, on the first day of Committee last week, which he cast like a fly over the water but no fish bit. It was a very important point that should be borne in mind. Both the Minister today and the noble Lord, Lord Wedderburn, made reference to the fiduciary responsibility within a board, but, if I heard them correctly, they presented it as though it were a means by which there should be a duty of care in respect of fiduciary responsibility.
I should like to reverse the point for Members of the Committee. I believe that in this case, and many others, fiduciary responsibility will be fielded by boards as a mitigation and justification for committing manslaughter. Perhaps I may put a real case to the Committee—it is case C among my examples. We were diving in the Torres Strait between Port Darwin and Papua New Guinea and the wind was so bad that we could not complete a contract by midnight, without which a £3 million penalty would be imposed on me, which I could not pay. I had a fiduciary responsibility to my shareholders not to incur a £3 million penalty, so I dived on and killed a diver. My justification for that would be that I could not bankrupt the company for £3 million and so I had to carry on diving and hope that the risk did not materialise. It did.
That is the reverse of the point that I think was raised by the noble Lord, Lord Wedderburn, and the Minister. By the way, I am not pleading guilty to murder because there were other justifications in that case which would cause an unnecessary complication at the moment. However, I think that the issue of fiduciary responsibility will be hugely important as a potential mitigating factor in many boards’ defence, and it needs to be borne in mind as we go forward.
Corporate Manslaughter and Corporate Homicide Bill
Proceeding contribution from
Lord James of Blackheath
(Conservative)
in the House of Lords on Monday, 15 January 2007.
It occurred during Debate on bills
and
Committee proceeding on Corporate Manslaughter and Corporate Homicide Bill.
About this proceeding contribution
Reference
688 c177GC Session
2006-07Chamber / Committee
House of Lords Grand CommitteeSubjects
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