Guide for Directors - Understanding Your criminal law legal risks

Summary

There are a number of ways in which company directors face risks of criminal liability. These include :- There are a variety of ways in which company directors can expose themselves to criminal liability. This is notwithstanding the general rule that with a limited company, it is generally difficult to "go behind the corporate veil" based on actions in the company's name treated as a separate legal entity from the owners and directors. Potential director criminal liability for fraud can arise due to :- Directors of UK companies can face significant legal penalties if their companies are found to be in breach of health and safety or environmental regulations. These penalties can include criminal penalties including fines where directors can be fined substantial amounts, potentially reaching millions of pounds and/or imprisonment in serious cases for directors. The severity of the sentence often depends on the nature of the breach, the harm caused, and the director's role in the company. The Bribery Act 2010 is the primary piece of legislation governing bribery and corruption in the UK. It covers a wide range of bribery offenses, including offering, accepting, and requesting bribes.

Key information

• •Fraudulent misrepresentation
• •Furlough and bounce back loan fraud
• •Offering a bribe \- offering a gift, loan, or other advantage to a person in a position of authority to influence their decision-making.
• •Accepting a bribe \- accepting a gift, loan, or other advantage in exchange for influencing a decision.
• •Requesting a bribe \- demanding or requesting a gift, loan, or other advantage in exchange for influencing a decision.
• •Facilitating a bribe \- helping another person to offer or accept a bribe.
• •Failing to prevent bribery
• •There are a number of ways in which company directors face risks of criminal liability. These include :-
• •There are a variety of ways in which company directors can expose themselves to criminal liability. This is notwithstanding the general rule that with a limited company, it is generally difficult to "go behind the corporate veil" based on actions in the company's name treated as a separate legal entity from the owners and directors.
• •Potential director criminal liability for fraud can arise due to :-
• •For more detail about director fraud from both the perspective of the company/fellow directors or an accused director, click here.
• •Directors of UK companies can face significant legal penalties if their companies are found to be in breach of health and safety or environmental regulations. These penalties can include criminal penalties including fines where directors can be fined substantial amounts, potentially reaching millions of pounds and/or imprisonment in serious cases for directors.

Practical guidance

• •Source: [Guide for Directors - Understanding Your criminal law legal risks](https://www.taylor-rose.co.uk/posts/Director-criminal-liability)

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