Johnnny Essay

783 Words Feb 5th, 2016 4 Pages
University of technology
College of business and Management
School of business Administration
Company Law
Semester 2

Shanel Stone
Ms. Clarke
Monday 8 – 10
January 25, 2016

Should either John Doe, the operations manager or ABC ltd be held criminally liable for the death of the driver? Who should be held liable for committing a civil act? When a company is incorporated/ registered, it becomes a legal person in law and assumes a corporate personality, in the case of Salomon v. Salomon Co., where Salomon had a leather merchant, he later decided to convert the business into a limited company and for this purpose Salomon & Co. was formed with Salomon, his wife and five of his children as members, and Salomon as
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A company may be found criminally liable if the offence is one of strict liability; that is liability without fault. For criminal liability to be attached to a company, outside of strict liability, it is necessary to prove either guilty knowledge or guilty intent. A court in determining whether or not there was guilty intent or guilty knowledge is guided by applying the “directing mind or will test”. Here the acts and knowledge of managers and directors are attributed to the company. Therefore, the state of mind of these managers and directors are treated in law as the state of mind of the company. There are two alternative terms for the directing mind and will test, first; The Alter Ego Principle, which provides that the directing mind and will of the company is the very ego and centre of the personality of the company. In the case of R v Kite and OLL Ltd , a company operating an activity centre on the Dorset coast was held criminally responsible for the deaths of four young people who were sent on a canoeing trip without proper instructions or supervision. The state of mind of the managing director who was also convicted was attributed to the company as he was found to have known that safety standards were too low. The second alternative term for the directing mind and will test is the Identification Principle In this test, the objective is to identify those who actually control the company.

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