Many of those that attended were
directors and managers responsible for guiding boards on corporate responsibility. Peter Garrett , Director of SES, says the new legislation is one of the most important issues facing companies in 2008.
“It’s clear that local companies are taking it very seriously indeed. We run workshops and seminars on a wide range of issues, but this one attracted unprecedented interest. If there are other companies that feel they are unsure about their responsibilities under the Act, it is essential that they address the issue as soon as possible.”
On 6 April the Corporate Manslaughter and Corporate Homicide Act 2007 comes into force. For the first time, companies and organisations can be found guilty of corporate manslaughter on the basis of gross corporate failures in health and safety instead of it having to be proven that an individual manager was at fault.
In order to convict a company of manslaughter it will need to be shown that a link existed between a grossly negligent act by a person who is the ‘controlling mind’ of the company, and the immediate cause of death.
Usually a person can only be a ‘controlling mind’ if they are a director or other superior officer, carrying out the functions of management, but if the board has delegated part of their functions of management, then in such circumstances the delegate can also be considered a ‘controlling mind’.
But Peter Garrett says companies with good safety policies have nothing to fear from the new act.
“The definition of gross corporate failure sets the level of failure at a very high level and those companies which can show that they care about health and safety will be able to prove they are not guilty of gross negligence.
“However, the new Act will certainly make prosecution of small and medium companies much easier, because the huge burdens in mounting a successful prosecution against negligent companies, and indeed the need to identify one senior person in a company who knew enough to be liable, will now not be necessary.”
Penalties for companies convicted will include an unlimited fine, remedial action and publicity orders. No directors or other individuals will be prosecuted under the new law, thus there will be no sentences of imprisonment, but it is thought that the stigma and damage to the company's reputation which a corporate manslaughter conviction would involve, will ensure that this law makes safety a high priority on the boardroom agenda.
Individuals will still be liable under other health and safety laws and the penalties of disqualification as a director, fines or imprisonment are still available.