How corporations can be liable in their own right


Assignment task: A corporation, as a legal person, is generally able to be found to have committed the same offences as a natural person. A corporation can be found to be directly liable, or vicariously liable for the actions or decisions taken by employees and even independent contractors working for the company.

The fact that a company can be held liable for the decisions and actions of employees or agents which lead to environmental harm can drive companies to ensure all due care is taken and risk management processes are in place. However, penalising the company directly may not be effective in its own right, especially if ?nes and other penalties are too low to have an impact. As such, it is also important to consider ways to hold individuals within a company personally accountable for environmental harm.

If corporations can be liable in their own right, what about their directors and senior managers? Is the following statement True or False?

Modern environmental legislation generally provides that directors and business managers can also be found personally responsible for whatever offences are attributed to the corporation. This means that a corporate director can also be personally liable for the offences committed by the corporation and personally subject to penalties such as fines and even imprisonment. Select one: True False

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Business Law and Ethics: How corporations can be liable in their own right
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