Decriminalization Of Corporate Offences: A Comparative Study On Indian Law And International Practices In USA And UK
- IJLLR Journal
- 23 minutes ago
- 1 min read
Logesh V, Srivishnupriya K & Subasri S, KMC College of Law
ABSTRACT
Corporate law across the world has always walked a fine line between ensuring compliance and avoiding over-regulation. Traditionally, many corporate defaults—ranging from minor procedural lapses to grave instances of fraud—were criminalized in India. This approach led to an excessive burden on courts, a climate of fear among entrepreneurs, and obstacles in the growth of business. In recent years, India has adopted a policy of decriminalization of corporate offences, particularly through the Companies (Amendment) Acts of 2019 and 2020, which converted several criminal offences into civil wrongs punishable with monetary penalties rather than imprisonment.
This research paper undertakes a comparative analysis of India’s evolving approach with that of the United Kingdom and the United States. Both these jurisdictions reserve criminal liability primarily for serious fraud and misconduct, while addressing minor violations through civil and regulatory mechanisms. The paper evaluates whether India’s reforms align with international practices and assesses their implications for corporate governance and investor confidence.
The study finds that India’s move is largely in line with global trends, though challenges remain in enforcement and governance culture. Recommendations include strengthening civil penalty mechanisms, adopting governance codes akin to the UK, and reinforcing disclosure norms similar to the U.S. The conclusion suggests that while decriminalization is a welcome reform for business facilitation, it must be balanced with strong deterrents against fraud to sustain public trust in the corporate system.
Keywords: Decriminalization, Corporate Offences, Companies Act 2013, India, United Kingdom, United States, Comparative Corporate Law, Governance, Corporate Liability.
