Here are my conclusions in respect of Mark Elman’s concern on whether Mark, James and MJ Food and Wines Ltd (the “Company”) could face any criminal sanction as a consequence of Duncan’s criminal offence. My understanding of the factual situation is set out in the attached report.
Review of Research
Mark and James will not face any criminal sanction. As a matter of fact, Mark and James are both shareholders and directors of the Company. No liability could arise against them merely from their position as shareholders. Although Mark and James could be held liable for breach of their statutory and common law duties which they owe to the Company as directors since they failed to exercise their duties with reasonable care and diligence. They fell …show more content…
It is a strict liability offence which does not require knowledge, participation or approval by the Company (R v J). What is merely required is Duncan’s offence of bribery, given that Duncan (sales manager) is a person associated with the MJ Food and Wines Ltd and Duncan has committed the offence of bribing another person under Section 1 of the Bribery Act 2010 with the intention to induce the local authority’s procurement officer to enter into a contract with the …show more content…
However, if the Company fails to show that it had adequate procedures in place it could be guilty of an offence (s 7 BA10) and liable on conviction on indictment to an unlimited fine (s 11(3) BA10). The appropriate figure of the fine which the Company may face will normally be the likely cost avoided by failing to put in place appropriate measures to prevent bribery. We need to obtain further information from the Company on the procedures it had in place at the time of Duncan’s
Review of Research
Mark and James will not face any criminal sanction. As a matter of fact, Mark and James are both shareholders and directors of the Company. No liability could arise against them merely from their position as shareholders. Although Mark and James could be held liable for breach of their statutory and common law duties which they owe to the Company as directors since they failed to exercise their duties with reasonable care and diligence. They fell …show more content…
It is a strict liability offence which does not require knowledge, participation or approval by the Company (R v J). What is merely required is Duncan’s offence of bribery, given that Duncan (sales manager) is a person associated with the MJ Food and Wines Ltd and Duncan has committed the offence of bribing another person under Section 1 of the Bribery Act 2010 with the intention to induce the local authority’s procurement officer to enter into a contract with the …show more content…
However, if the Company fails to show that it had adequate procedures in place it could be guilty of an offence (s 7 BA10) and liable on conviction on indictment to an unlimited fine (s 11(3) BA10). The appropriate figure of the fine which the Company may face will normally be the likely cost avoided by failing to put in place appropriate measures to prevent bribery. We need to obtain further information from the Company on the procedures it had in place at the time of Duncan’s