All through out history and even currently, people seem to be only able to relate criminal law and crimes to bad deeds made by certain evil individuals. Crime seems to be a sort of immoral activity that a person commits. While in reality the most dangerous crimes are those committed by corporates. Criminal law regulation of health and safety measures is probably the thing that saves our lives the most, but all of these prohibited activities in these Acts are labeled offences and not even crimes such showing how we think of these as a lower form of unlawful activities. The UK is a country where the life of the community maintained by activities of corporates, we cannot live without them any more and they almost control our lives. The criminal law has sought to regulate the activities of the corporates using various doctrines and principles.
Why do we need special principles to prosecute corporates for their crimes? A corporate is a legal fiction, it is not like a normal person that has a mind of his own or a hands that he can act with. A corporate cannot kill or steal in the traditional sense, but this does not mean that there are no crimes committed by corporates. The Interpretation Act 1978 has established that in every act a person includes a body of persons corporated or unincorporated unless otherwise indicated in the act. This means that a corporate may be criminally liable even though it has no physical existence and cannot act or think except through its directors or servants.
This still does not mean that a company could be convicted of any crime, as some crimes cannot be committed because of their very nature, examples of these are rape, incest and bigamy. This does not mean that a company cannot be held as an accessory for such an offence. In addition to the previous exception, a company cannot be convicted of a crime that is only punishable by a physical penalty such as death or a life imprisonment. Corporates are punished by the imposition of a fine and/or a compensation order.
There are four main ways of convicting a company for committing a crime: (1) Vicarious Liability, (2) The Identification Principle, (3) Personal Direct Liability o, and (4) the Meridian Decision.
1- Vicarious Liability: Unlike Tort, there is no such general principle of vicarious liability in which any employer would be held liable for torts of his employee as long as they are made within the course of employment. The traditional way of convicting an employer is holding him liable as an accessory to a crime, case Huggins > Warder allowed turnkey to murder a prisoner.
Anyway, there are exceptions to the general rule so that an employer would be held liable for his employee’s offences. There are three situations where the employer would be convicted vicariously, 1 – when the act expresses vicarious liability, 2 – when there is a delegation of responsibility, 3 – as a result of judicial interpretation of offences of a regulatory nature.
There are some general points that are examined upon the creation of vicarious liability of an offence, these include the nature of the duty laid down, the person upon who the duty is imposed, the words used, the person whom it would in ordinary circumstances be performed, and the person upon whom the penalty is imposed.
What is the delegation principle? It is an exception to the general rule for offences that are not of strict liability where the mens rea would have to acquired by the employer to convict him. Under this principle, the mens rea of the employee would be sufficient to convict the employer where it can be established that the latter had delegated his responsibility to the former. The creation of this principle was required to catch cases where the offence could be committed by persons of a particular status.) An example of a case where the principle took effect is Allen v Whitehead where the manager let prostitutes making the licensee liable as he put another person in his position so that to represent him.
What is required for delegation is not always clear, what is required is a complete transfer of authority and responsibilities to another person AND the absence of the licensee from the premises. In Winson partial delegation was not sufficient. But in Howker v Robinson the barman’s offence was assigned to the licensee even though he did not have any real delegation, it is widely perceived that this case is wrongly decided.
There are three limitations to the principle, the first is obvious that the employer would only be responsible for acts made in the course of employment. The second limitation is that there cannot be vicarious liability for aiding and abetting, and the third is that there cannot be vicarious liability for attempts.
2 – The Principle of Identification, unlike vicarious liability, this is a direct corporate liability where the company is liable for its own acts and not those of its servants or agents, because corporate liability is a fiction, acts and thoughts of a human person are converted into those of the corporation. As in Tesco v Nattrass, this is not a question of vicarious liability, the person is not acting as a servant, or agent. He is an embodiment of the company, he speaks and hears through the persona of the company and his mind is the mind of the company. If his mind is guilty the company is guilty.
For the identification principle to take place, the jury must find a person who is regarded as having acted as the company, the corporation will only be liable where the person identified with it was acting within the scope of his office. In determining whether a person acted as the company or simply as a servant, a distinction has to be made between those who represent the mind of the company and those who represent its hands.
The fact that a person is involved in brain work rather than manual work is not the test, what is requires is that such a person represents the directing mind and will of the company and controls what it does. In Tesco v Nattrass the manager was not a person who acted as the company, no delegation by the board of directors of any of their managerial functions in respect of the affairs of he company to the branch manager. He had to take all the directions from the company and take orders of his regional and district supervisors.
Ironically, the identification principle operates not only to establish liability but it can excuse liability for certain regulatory offences where a 3rd party defence is available. In addition to this, there are four main problems with the principle of identification:
i – The larger and more diverse a company is, the more likely it is that it will be able to avoid liability, this is because the real minds of the company that control it are way too high in the hierarchy of the company and they are completely isolated from the smaller works that actually have a direct contact with the final consumer. It is almost impossible to have a person with the required amount of authority to have the specified mens rea of the offence.
ii – The principle does not fill well with many regulatory offences which do not require mens rea but have defences of the existence of a 3rd causing party. These should be dealt with using vicarious liability and not the identification principle. (eg. Tesco v Brent where a cashier sold an over 18 move it a kid, the cashier was under the control of his employer, the defence was not available.)
iii – The company will only be liable when a person, himself, individually would be liable in that he had the mens rea of the offence, this does not reflect the understanding of the modern corporate existence where an error could be caused by the error of different multiple individuals in the company as each would have a different degree of knowledge. The principle of aggregated mens rea was rejected and is not applicable under criminal law.
iv – Maridian diluted the principle.
3 – Personal Direct Liability, this is a basic form of liability created by the act as a duty that cannot be delegated. The offence can only be committed by an omission. eg, Health and Safety at Work.
4 – The decision in meridian, in this case the court managed to convict a corporate because of a the actions of a certain team that did not constitute the directing mind of the company. The court established the attribution principle on the basis of the statutory language, its contents and the underlying policy which would be defeated if knowledge on the part of those who constituted the directing mind of the company was required to be proved. This special rule would only apply where a statute was intended to apply to companies and application of the identification principle would defeat the purpose of the statute.