More serious penalties for offences for companies

2018.06.29

The Ministry of Justice has prepared a new bill on the criminal liability of collective entities. The new law is meant to give new life to the 2002 act, which is very rarely used by law enforcement.

At present, for a collective entity (i.e., in particular, a company) to be criminally liable, a natural person must be convicted in a legally binding way. It must be a representative of the company (e.g. board member) or another person acting on its behalf (e.g. attorney, director, employee). What is more, it is necessary to prove that the company is guilty in its appointment of or supervision over such person. The new bill sets no such requirements. The prosecutor will be able to investigate the company even if no investigation has been launched against any natural person. The company will be the ‘perpetrator' of the offence, and it may be the only 'person' convicted for it.