STOPPING CORPORATE CRIME IN SCOTLAND

STOPPING CORPORATE CRIME IN SCOTLAND

SNP MSP Dr Bill Wilson MSP will this week introduce his proposal for a
Criminal Sentencing (Equity Fines) (Scotland) Bill which he hopes will go
some way to reducing deaths, injuries and environmental damage caused by
corporate criminal action and negligence and giving judges more power to
seek redress from firms.

The final proposal for the Bill, aimed at deterring corporate crime, will be
lodged in the Scottish Parliament on Monday.

The bill has two primary aims

1) To give courts the power to order independent investigations of
the financial position of companies found guilty of criminal offences

2) To allow courts to order public companies convicted of corporate
crimes such as corporate manslaughter to issue new shares with the proceeds
being awarded to the court as a monetary fine.

Discussing his proposal Dr Wilson said:

“I have been appalled by the fact that companies were fined less than
£12,500 in half the cases where they were found criminally responsible for
deaths.

“With such low fines for major crimes some unscrupulous firms have no
incentive to invest in health and safety.

“Companies that act in an ethical and responsible way would have nothing to
fear from this Bill. Indeed, they should benefit, as it would remove
unethical competition from those that cut corners.

“The first part of my bill would give courts the power to order independent
enquiries into the financial position of companies found guilty of criminal
offences. As the law stands, companies can present their own version of
their books and plead poverty putting judges in the difficult position of
imposing high fines or fearing putting employees out of work.

"Allowing courts to get an independent assessment of companies financial
health won the near universal support of respondents to my consultation and
as well as introducing the bill I would hope this can be brought in more
quickly as an amendment to the ongoing Criminal Justice and Licensing bill.

“The second proposal would provide a new way for companies to pay fines and
for people to obtain real compensation. I want to see the courts have the
powers to order convicted public companies to issue new shares with the
proceeds from selling these shares turned over to the court as a monetary
fine would be or paying compensation to relatives.

“As the value of shares held by existing shareholders would be significantly
affected, this could focus minds on ethical and responsible behaviour, and
it would be much harder to pass the cost of penalties on to employees, as
can happen with monetary fines.

“I think the potential benefits to Scotland of leading the world in such
progressive legislation would be considerable. For this reason I am formally
proposing that courts be allowed to impose equity fines on public companies
found guilty of criminal offences.

“I already have more than half the eighteen signatures I need for the Bill
to be introduced. I am hopeful of obtaining the rest within the requisite
month.

"Scotland should welcome the former and send a clear message to the latter
that it will not tolerate profits being made from killing and injuring its
people and destroying its environment.”