ACCA Applied Skills · Corporate and Business Law (Global) · Fraudulent and criminal behaviour
Dunmore plc has been accused of its employee bribing a foreign official to win a contract. Under a statutory corporate offence of failing to prevent bribery by associated persons, which defence is generally available to the company?
The defence is that the company had adequate procedures designed to prevent bribery. Failure-to-prevent offences do not require board knowledge of the specific bribe, so ignorance alone fails, and successful contract performance is irrelevant. Proof of proper preventive procedures is the recognised statutory defence.
- AThat the board did not know of the specific bribe, even though no procedures existed
- BThat it had adequate procedures in place designed to prevent briberyCorrect
- CThat the contract was successfully performed and the client was satisfied
Explanation
Failure-to-prevent offences are typically strict on the company, with the defence of having adequate procedures to prevent the bribery. Lack of board knowledge is not enough if no procedures existed. Performance of the contract does not cure the bribe.
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