Regulation and risk management are serious issues for business. Failures may lead to criminal sanctions, personal liability for directors, adverse publicity and loss of business. The regulators are powerful; fines are increasing and frequently linked to pre-tax profits.
There are proposals to increase the range of available sanctions to make provision for on the spot fines for regulatory breaches, corporate probation orders and adverse publicity orders which will cause reputational damage.
Health and safety performance remains an issue particularly for the construction industry with the HSE warning of a possible 10-15% rise in fatal accidents in 2007. The Corporate Manslaughter Bill, which is currently before Parliament, is intended to make it easier to prosecute companies for manslaughter with the focus on senior management conduct. The legislation will lead to a significant increase in the number of criminal investigations into work place deaths. It is essential that lawyers are involved in any investigation at an early stage in order to prevent the company from making admissions that may later prove damaging.
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Who to contact:
Stephen Gorman
(pollution and contamination)
0161 955 3865
sgorman@dac.co.uk
Fiona Gill
020 7293 4255
fgill@dac.co.uk
