Principle of Lennard's Carrying Company

Question

Explain the first established principle of Lennard's Carrying Company Ltd. v. Asiatic Petroleum Company Ltd.?

Answer 1

Lennard's Carrying Company Ltd. v. Asiatic Petroleum Company Ltd. first established the principle that a corporation can commit an act requiring a guilty mind. It opened the door to finding the actions of senior officers and directors to be those of the corporation itself with regard to committing acts and to the requirement of a guilty or negligent mind.

Thus, the corporation and/or its directors and senior officers may be found guilty of criminal offences. Prosecuting the latter, of course, opens up the possibility of deterrence by way of imprisonment rather than just fines.