A Comparative Cross-Jurisdictional Study of Laws on Corporate Criminal Liability

Abstract

A corporation is a legal entity that exists separately from its founders and shareholders and is operated by an elected board of directors. A corporate organization that runs a business can bring legal action, be sued, and borrow money. When a company gets incorporated it limits the owner’s personal liability and turns into its own unique tax entity. With regards to the Companies Act, 2013 the term “body corporate” encompasses companies registered outside the Indian territory but precludes registered cooperative societies as defined by any other law or a body corporate that was designated by a central government notification. Corporate crime refers to the criminal act of corporate directors or managers for the benefit of the corporation. The fundamental principle of criminal liability is based on the Latin proverb “actus non-facitreum, inconclusive mens sit re,” which states that to hold someone accountable, it must be proven that their action was unlawful and motivated by guilt. Corporate crimes are different from traditional crimes, they include bribery, corporate fraud, embezzlement, counterfeiting, forgery, and tax evasion. In the 21st century, corporations have become an integral part of our society and they hold the position that in case of any wrong, they can impact the economy. With new technological developments, there is a huge risk of society being exploited by corporates for monetary gains. It can be said that apart from being an asset, corporations can also be hazardous to society. Thus. It’s pertinent to deter corporate crimes and hold the miscreants liable for the betterment of society. The history, nature, and various forms of corporate crime are all covered in the current study. The researcher would also intend to elaborate on the theory, prototypes, and governing legal framework surrounding corporate criminal liability in India and other nations.