The Government is moving to close a legal loophole – so that for the first time it will be possible for a company to be convicted of killing by gross carelessness.
The Government is moving to close a legal loophole – so that for the first time it will be possible for a company to be convicted of killing by gross carelessness.
Under the new legislation due to be introduced in the near future, a new offence of ‘corporate killing’ will be created which, warns Norwich Union Risk Services, is likely to open the legal floodgates.
In the past, a company could only be held responsible if an individual such as a company director was found personally guilty of involuntary manslaughter – often difficult to prove. The new category of ‘corporate killing’ will allow a company to be sued without first needing to establish the guilt of an individual.
Teresa Budworth, training and consultancy manager at Norwich Union Risk Services, said: "It is usually extremely difficult to pinpoint one individual who is the embodiment of the company and prove he or she is guilty of involuntary manslaughter, particularly within a large organisation.
"The new law makes it easier to establish guilt in relation to a whole company - and easier to bring legal proceedings against an organisation.
"This loophole has allowed tragedies such as the Herald of Free Enterprise disaster, the King’s Cross fire and the Clapham rail crash to escape legal action, even though a verdict of unlawful killing was returned.
"Small businesses are equally likely to be brought to trial.
"We would recommend that all companies consult a competent person to advise them on how to control the risks arising from their activities. Risk assessment is a legal requirement and is a key part of any strategy to prevent accidents at work.
"Quite apart from the human costs, accidents have a major impact on a company’s bottom line. A policy of controlling risks will usually make a company more competitive."
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For further information, please contact:
Alison Owen at Staniforth on 0161 274 0100 or David Ross at Norwich Union on 08703 66 68 65/07786 526350.
To read the Government’s proposals on "Reforming the law on involuntary manslaughter," visit www.homeoffice.gov.uk/docs/invmans.html.
Notes to editors
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