Limiting Corporate Criminal Liability: A Strategic Study On The Methods Of Limiting Corporate Criminal Liability
- IJLLR Journal
- Apr 11
- 1 min read
Tara Basanthi S, Law Student, SRM School of Law, SRM Institute of Science and Technology
ABSTRACT
The principle of an individual corporate personality is the bedrock of modern corporate law, allowing companies to stay distinct from stakeholders and directors and ensuring that there are no ethical challenges to the corporate form. In cases of vicarious liability in cross border establishments, this doctrine shields the parent company for being held accountable for that of the subsidiary’s actions.
The complexity arises in the case of Multi-National Corporations. MNCs face significant challenges with regard to criminal liability, due to its transnational nature. The main complexities arise from the lack of uniformity in jurisdiction and compliance. Popularly, MNCs function in countries with weak law enforcement creating a risk of amnesty.
Implementing a uniformed manner of compliance and governance in par with international standards would help not only avoid double jeopardy but also hold the subsidiary company or particularly the person responsible and hold them alone liable. Parent companies should not be held liable especially if the crime committed was not foreseeable. Many international cases had laid down the standards for attribution of the company with relation to actions and liability and should be held liable under “special rules of attribution” set by the court.
Such modern approaches which are tailored to each case help in providing the best possible verdict which will benefit the company and its employees from damages. This article proposes to present possible legal changes and adoptions of international standards for such situations.
Keywords: Criminal liability, corporate personality, Cross border liability, attribution, multinational corporations
