29 November 2007

Firms found guilty of the new offence of corporate manslaughter should be fined as much as 10% of their annual turnover, according to a government advisory body.

Launching a consultation on sentencing guidelines for the Corporate Manslaughter and Corporate Homicide Act, the Sentencing Advisory Panel (SAP) also proposed that courts should impose a "publicity order" on every organisation convicted of the offence to advertise the fact of its conviction, the fine imposed and any other terms.

The SAP believes "comprehensive" guidelines are required because corporate manslaughter is a new offence and courts will be unfamiliar with publicity orders, which are an entirely new sanction in England and Wales.

Under the Corporate Manslaughter Act, which comes into force on 6 April, courts may impose an unlimited fine, a publicity order and/or a remedial order.

For a first offence of corporate manslaughter where the defendant has pleaded not guilty, the SAP proposes a starting point of 5% of annual turnover (based on an average taken over three years). Taking into account any aggravating or mitigating factors, the court should ultimately arrive at a fine of between 2.5% and 10% of turnover. Previous convictions or other serious aggravating factors could result in the fine exceeding 10%.

Safety charity the Centre for Corporate Accountability welcomed the proposal that courts should impose publicity orders on all organisations convicted of corporate manslaughter, but executive director David Bergman said the CCA's "initial response is that the proposed levels of fines are simply too low."

The consultation paper is available at www.sentencing-guidelines.gov.uk - responses are required by 7 February.

Categories:
News, Corporate manslaughter