NCJ Number
59022
Journal
Ottawa Law Review Volume: 9 Issue: 2 Dated: (1977) Pages: 247-302
Date Published
1977
Length
56 pages
Annotation
STATUTES, JUDICIAL DECISIONS, AND LEGAL DOCTRINES WHICH IMPOSE CRIMINAL LIABILITY UPON CORPORATIONS ARE DISCUSSED WITH EMPHASIS ON THE DEVELOPMENT OF CORPORATE AND AGENCY LAW IN CANADA.
Abstract
THE DEVELOPMENT OF THE LAW OF CORPORATE CRIMINAL LIABILITY REPRESENTS A SYNTHESIS OF LEGAL CONCEPTS, AND A RESPONSE TO ECONOMIC AND SOCIAL FACT. EARLY CANADIAN CRIMINAL CODES INCLUDED CORPORATE PERSONS IN THE JURISIDICTION OF THE LAWS PROHIBITING TRADE RESTRAINTS, LIMITING PRODUCTION, AND HINDERING COMPETITION. THESE DEVELOPMENTS LED CANADIAN COURTS TO EXTEND PERSONAL CORPORATE LIABILITY FOR THE ACTIONS OF OFFICERS AND AGENTS BEYOND THE VICARIOUS LIABILITY TRADITIONALLY IMPOSED ON COMPANIES. CORPORATIONS NOW CAN BE HELD LIABLE FOR ALMOST ALL OFFENSES INCLUDING MANSLAUGHTER. THE EXCEPTIONS TO LIABILITY CONCERN OFFENSES SUCH AS RAPE OR BIGAMY WHICH CANNOT BE COMMITTED BY A CORPORATION, ALTHOUGH CIRCUMSTANCES MAY MAKE IT APPROPRIATE TO CHARGE A COMPANY WITH BEING AN ACCESSORY TO SUCH CRIMES, IF CORPORATE NEGLIGENCE OR POLICY CONTRIBUTED TO THE OCCURRENCE OF THE CRIME. THE LEGAL DOCTRINE OF THE UNITED STATES COURTS PREVENTS A CORPORATION FROM SEPARATING ITSELF FROM THE CRIMINAL ACTIONS OF RESPONSIBLE AGENTS EVEN IF THE CRIME WAS CONTRARY TO CORPORATE POLICY AND FAILED TO DIRECTLY BENEFIT THE CORPORATION. SUCH LIABILITY ALSO IS JUSTIFIED BY THE DIFFICULTY IN DETERMINING THE INDIVIDUAL RESPONSIBLE FOR A CRIME WHICH AIDED A CORPORATION, AND SUPERIOR OFFICERS ARE NOT VICARIOUSLY LIABLE FOR ACTS OF UNDERLINGS, SINCE ONLY THE CORPORATION CAN BE REGARDED AS THE EMPLOYER. PROPOSALS FOR REFORM INCLUDE THE DETERRENCE OF BUSINESS CRIMES BY THE IMPOSITION OF PENALTIES ON CORPORATE OFFICERS, AND THE IMPOSITION OF STRICT LIABILITY FOR MANY CORPORATE OFFENSES. FOOTNOTES ARE PROVIDED. (TWK)