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Corporate Liability Under Criminal Law

   

Added on  2020-04-07

5 Pages917 Words134 Views
Running Head: Law 1Law

Law2Part ACorporate liability under criminal law define the extent up to which organization as legal entitycan be held liable for the acts committed by natural person employed by the company. It mustbe noted that identification doctrine can be considered as main rule for the purpose ofdetermining the liability of organization under both civil and criminal law for the wrong actscommitted by the agent of the corporation and servants of the company. This theory states thatmind of the natural person who control and manage the affairs of the corporation can beconsidered as the mind of the company itself. Therefore, this doctrine is also known as thedoctrine of directing mind and will. This theory is developed in case law Lennard’s Carrying Co. Ltd v Asiatic Petroleum Co Ltd.This case was determined by the House of Lords and they determine the question whether ownerof the ship can be held liable for the loss of cargo because of the wrong navigation of one of itsship. In this case, Viscount Haldane held that liability related to the actual fault would not lie onthe servant and agent only but it also lie on the company because action of the servant and agentof the company can be considered as the action of the company itself. Therefore, in this caseCourt applied the directing mind and will theory (Lim, 2011). After sometime in case law Daimler Company Ltd v Continental Tyre and Rubber Company(Great Britain Ltd), it was confirmed by Lord Atkinson that residence place of the was the placefrom which the directing mind and will of the company will be controlled by its officers andagents. However, it is important to note that approach of Lennard’s case is not applied in thiscase and approached used by Judge in this case is not the identification theory but just theagency law.

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