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ACCA Applied Skills · Corporate and Business Law (Global) · Fraudulent and criminal behaviour

A company's employee, acting within the scope of her job, bribes a foreign official to win a contract for the company. Under the general approach in most jurisdictions to corporate criminal liability, which statement is most accurate?

The company may be criminally liable as well as the employee. A company is a separate legal person and can be held responsible for offences attributable to it, for example through its directing minds or a failure to prevent bribery. Liability does not depend on shareholders' knowledge.

  1. AOnly the employee can be liable, because a company has no mind and cannot commit crimes
  2. BThe company may also be criminally liable, as well as the employee, where the offence is attributable to itCorrect
  3. CThe company is liable only if every shareholder knew of the bribe

Explanation

A company has separate legal personality and can be held criminally liable, for example through the acts of those who represent its directing mind or, under bribery statutes, through failure to prevent bribery. The individual remains liable as well. Shareholder knowledge is irrelevant.

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